Benefits of Owning a Home Which Have Nothing To Do With Investment Gains

Over the past 6 months I have been repeating Ric Edelman’s saying of owning a home shouldn’t be viewed as an investment but a lifestyle. 

When you own a home you get to make it yours and change things that fit you and your family best.  Just because housing isn’t a way to get rich quick anymore like it was during the boom years doesn’t make it a bad investment.  I am sure those who bought in 1992 at the end of the recession were happy with their investment 10 years later.  I don’t know where home prices will be in 30 years but what I do know is that if you pay rent for 30 years you don’t accumulate anything. 

Buying a home isn’t for everyone, nor should it be.  That is what got us in this mess in the first place.  There is nothing wrong with renting especially since there are more expenses associated with owning a home. 

Here are five of them:

· Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.
· Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
· Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.
· Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.
· Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.