For a long time, conventional wisdom seemed to be that you grow up and buy a home because that’s just what you do. But lately, people are realizing that it isn’t always the smartest financial move. Obviously, the housing crisis has a lot to do with that—it’s made people question the standard assumption that homeownership equals financial stability.
Homeownership isn’t a good or bad idea on its own. It has everything to do with your own situation. Sometimes, buying a home is the smart thing to do; other times, it really isn’t. Whether or not it’s smart for you will depend on a few different factors. Here’s what you should keep in mind.
The biggest argument for owning a home is that it’s an “investment.” But a lot of people tend to overestimate the return on this investment.
People tend to believe that homes are appreciating assets, but this isn’t always true. Overall, the housing market doesn’t have a great long-term return. It barely outpaces inflation, in fact.
| Action Rental Management Realty, 417 Ne 2nd St, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Active Agent Realty, 654 Se Fort Island Trl, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Active Agent Referrals, 654 Se Fort Island Trl, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Alexander Real Estate & Assoc, 5569 W Gulf To Lake Hwy, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Alexander Real Estate, 5569 W Gulf To Lake Hwy, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Area Realty Of Central Florida, 5569 W Gulf To Lake Hwy, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Buyersbrokerrealestate.com, Po Box 1900, Crystal River Fl 34423 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Century 21 Nature Coast, 835 Ne Highway 19, Crystal River Fl 34428 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Charles Alexander Realty, 5569 W Gulf To Lake Hwy, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Charlotte G Realty & Investments, Po Box 849, Crystal River Fl 34423 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| D F Heuchan, 10063 W Riverwood Dr, Crystal River Fl 34428 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Edward Russell Johnston Realty, 531 N Citrus Ave, Crystal River Fl 34428 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Exit Realty Leaders, 730 N Suncoast Blvd, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Freedom Realty Services, 7928 W Gulf To Lake Hwy, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Keystone Arbor Realty Florida, 900 Nw Snug Harbor Rd, Crystal River Fl 34428 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Mls My Fsbo, 10880 N River Ranch Path, Crystal River Fl 34428 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Plantation Realty, 1250 N Country Club Dr, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Plantation Rentals, 1250 N Country Club Dr, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Real Estate Referral Company Org, 1250 N Country Club Dr, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Rhema Realty, 1120 N Suncoast Blvd, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Seven Rivers Realty, Po Box 368, Crystal River Fl 34423 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Snell & Associates, 6210 W Corporate Oaks Dr, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Suncoast Realty Services, 1206 Se Us Highway 19, Crystal River Fl 34429 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
| Waybright Real Estate, 110 Ne Crystal St, Crystal River Fl 34428 |
|
Get contact info and detailed information for real estate companies. Information on MLS, how it works, and how it can help you sell your home. ...Real Estate Company Details - Click Here! |
Over the past 100 years, home prices have only grown at a compound annual rate of 0.3%, adjusted for inflation. The S&P 500, on the other hand, has had an annual return of 6.5%. That’s a big difference.
While that single real estate asset might help protect you against inflation, a well-balanced stock and bond portfolio seems to be a better investment. But a lot of people’s portfolios are mostly made up of their home value. You wouldn’t put 80 percent of your portfolio in a bond simply to protect against inflation (unless maybe you were nearing retirement) so why would your home make up that same amount? That’s the argument against buying a home as investment.
When making the decision it is important to understand that buying a home might not be a great financial investment and to not forgo all of your investable assets in order to purchase a home because you are really purchasing a right to housing and not a long-term investment designed to generate income.
Most experts agree that while housing is an investment, it’s not a great investment. So if this is your only basis for buying a home, it’s probably not the best one.
Decide How Much You Can Afford: In deciding whether you can afford to buy, you’ll have to figure out how much home you’re planning on buying in the first place. One rule of thumb for figuring out this number: your home should cost no more than 2.5 times your salary. Of course, this just gives you a ballpark figure. It doesn’t consider your net worth.
Weigh the Opportunity Cost of Renting Versus Buying: While your home might not be the best investment, in the end, it’s still yours. Even if it barely outpaces inflation, at the end of the day, you own it, and that’s worth something. When you rent, you own nothing—the money is given to someone else. So lots of people argue that you should own a home because one day, you’ll pay that home off and it’ll be yours, rather than continuing to pay rent for the rest of your life.
Copyright © 2023 All Rights Reserved Homeowners-Associations-Florida.com
Contact | FAQ | Terms of Use | Privacy Policy | Website Disclaimer