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.
| Akam Sales And Brokerage Florida, 1815 Griffin Rd Ste 101, Dania Fl 33004 |
|
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! |
| Alliance Cas, 1855 Griffin Rd Ste A407, Dania Fl 33004 |
|
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! |
| Be Realty, 4 W Dania Beach Blvd, Dania Fl 33004 |
|
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! |
| City Limit Properties, 1855 Griffin Rd Ste A407, Dania Fl 33004 |
|
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! |
| Commercial Capital Realty Advisors, 716 Se 3rd Ln, Dania Fl 33004 |
|
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! |
| Cutting Edge Investments & Realty, 1221 Stirling Rd Ste 114, Dania Fl 33004 |
|
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! |
| Decota Realty, 1502 S Federal Hwy, Dania Fl 33004 |
|
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 Group Usa, 225 E Dania Beach Blvd Ste 217, Dania Fl 33004 |
|
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! |
| Goodyear Realty, 242 S Federal Hwy, Dania Fl 33004 |
|
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! |
| Highview Properties, 215 N Federal Hwy, Dania Fl 33004 |
|
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! |
| Intergroup Properties, Po Box 244, Dania Fl 33004 |
|
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! |
| Jean Cook Realty, 46 Sw 1st Ave, Dania Fl 33004 |
|
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! |
| Keter Estates, 2050 Tigertail Blvd, Dania Fl 33004 |
|
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! |
| Key Brokers, 47 Se 1st Ave, Dania Fl 33004 |
|
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! |
| Levy Realty Advisors, 1210 Stirling Rd Ste 2a, Dania Fl 33004 |
|
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! |
| Master Development Partners, 115 N Bryan Rd Ste J, Dania Fl 33004 |
|
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! |
| Milton L Jones Realty, 9 Nw 4th Ave, Dania Fl 33004 |
|
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! |
| Ocean Homes Realty, 1450 Se 3rd Ave Unit 403, Dania Fl 33004 |
|
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! |
| Perrin Properties, 249 Sw 14th St, Dania Fl 33004 |
|
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! |
| Rainbow Investment Realty, 242 S Federal Hwy, Dania Fl 33004 |
|
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! |
| Realpro, 233 N Federal Hwy Ste 65, Dania Fl 33004 |
|
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! |
| Remax Reaction Realty, 34 S Federal Hwy Ste A, Dania Fl 33004 |
|
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! |
| Right About Real Estate, 468 Se 14th St, Dania Fl 33004 |
|
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! |
| Ryestone, 1855 Griffin Rd Ste A407, Dania Fl 33004 |
|
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! |
| Soleil By The Sea Realty, 34 S Federal Hwy Ste A, Dania Fl 33004 |
|
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! |
| Stampler Auctions, 1914 Tigertail Blvd, Dania Fl 33004 |
|
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! |
| Systematix Realty, 1241 Stirling Rd Ste 113, Dania Fl 33004 |
|
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! |
| Train Realty, 240 Nw 7th Ave, Dania Fl 33004 |
|
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! |
| U S Florida Realty, 717 Se 3rd Ln, Dania Fl 33004 |
|
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