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Investing in Owning a Home Think Again ! |
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Tuesday, 22 May 2007 |
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Owning a home can be unwieldy, nightmarish, and a very bad Investment Idea ..yes, we all tend to think owning a home would do good to us but I have a very different standpoint to this myth, Here's why that is not necessarily so.....
Sheer temptations lead many of us into owning a home, during the recent real estate boom. Owning a home for us all is issue of deep emotional gratification, we usually go out of the way to fulfill this inner desire that is within us.
And there are other reasons that tempt us into owning a home such as missing out on the "easy money" of home-price appreciation that has left many of us disgusted by the ever-rising mortgage payments, now worriedly realizing that what goes up can also come down in terms of depreciation in the value of the structure that we would have put up passionately, notwithstanding the slant stagnation in the real-estate prices witnessed in the past couple of years.
While the investment banker is lessening up ludicrously loose lending standards, just when many people have started giving the whole issue a second thought that they can’t afford the finance and have landed up in a noose.
In the face of all this I still see that people are pressurizing themselves into buying a new home, when it is some thing that they essentially don’t need to own one, just to satisfy the insatiable feeling of owning a home.
Nonetheless homeownership is a first-rate and enduring way for most people to build wealth over time. But that doesn't hold well for every one, it’s a bigger commitment and more expensive than most first-time buyers ever realize.
In the last 30 years, the average appreciation on a home investment exceeded the inflation rate; compare this to stocks, which outdone inflation by all counts in the same period.
Anyone who has lived the experience of owning a mortgaged home has realized the mortgage has out grown the cost of the home and lay financially upside down, some have sold the obsessive possessions for throw away prices, to get rid of the financial mess.
Home-price appreciation does not take into account the substantial amounts homeowners shell out for paying bills of maintenance, repairs and improvements notwithstanding the mortgage costs, renting in my opinion is a better choice unless you are profuse with funds, and normally renting is cheaper then owning.
Houses are lavish and knotty to buy, finance and maintain. If you don't have a strong desire to own your own walls, and do what it takes to keep them in good shape, you're probably better off remaining a renter.
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1. Written by
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, on 24-10-2007 18:11
Well written article. many people work all their life just to make the builder and the bankers rich.
ideasmoneyIdeas moeny |
2. Written by
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, on 22-06-2007 01:35
This has been a very good comprehensive article about investing in House. I am having thoughts of owning a house for investment. Your article made me think again about the option and explore other opportunities.
Thanks a lot |
3. Written by
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, on 22-05-2007 22:54
:cry :? :cry :cry :? :cry :? |
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