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.
| 360 Perspective Partners, 3616 Harden Blvd # 358, Lakeland Fl 33803 |
|
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! |
| Ace Realty Services, 2907 Deerbrook Ct, Lakeland Fl 33811 |
|
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! |
| Acumen Properties, 744 1/2 Johnson Ave, Lakeland Fl 33801 |
|
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! |
| Agency Property Management, 815 S Missouri Ave, Lakeland Fl 33815 |
|
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! |
| Agency Realty & Consulting, 815 S Missouri Ave, Lakeland Fl 33815 |
|
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! |
| Albritton Auctioneers, 420 Howard Ave, Lakeland Fl 33815 |
|
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! |
| All County Polk Property Management, 225 S Ingraham Ave Ste 4, Lakeland Fl 33801 |
|
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! |
| Amirrealty.com, 4175 S Pipkin Rd Ste 203, Lakeland Fl 33811 |
|
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! |
| Ans Investments & Brokerage, 4711 Highlands Place Dr, Lakeland Fl 33813 |
|
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! |
| Ardis Limited, 505 Martin Luther King Ave Ste #1, Lakeland Fl 33815 |
|
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! |
| At Your Service Realty, Po Box 2292, Lakeland Fl 33806 |
|
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! |
| Avery Properties, 1510 S Florida Ave, Lakeland Fl 33803 |
|
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! |
| Aviation Homes & Land, 3211 Stonewater Dr, Lakeland Fl 33803 |
|
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! |
| Baron Realty, Po Box 2007, Lakeland Fl 33806 |
|
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! |
| Bcr Referrals, 3900 S Florida Ave Ste 304, Lakeland Fl 33813 |
|
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! |
| Bill Wheeler Appraisals, Po Box 2416, Lakeland Fl 33806 |
|
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! |
| Blessed Home Realty, 2054 E Edgewood Dr Ste 5, Lakeland Fl 33803 |
|
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! |
| Bliss Realty Solutions, 2258 N Crystal Lake Dr, Lakeland Fl 33801 |
|
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! |
| Broadway Brokerage, 100 S Kentucky Ave Ste 290, Lakeland Fl 33801 |
|
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! |
| Brooks Chandler Realty, 3900 S Florida Ave Ste 304, Lakeland Fl 33813 |
|
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! |
| Btw Properties Of Lakeland, Po Box 2963, Lakeland Fl 33806 |
|
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! |
| Buckner Commercial Properties, Po Box 8774, Lakeland Fl 33806 |
|
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! |
| Cambridge Realty Of Central Florida, 3020 S Florida Ave Ste 101, Lakeland Fl 338 More ... |
|
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! |
| Cdc Properties Of Central Florida, 3900 S Florida Ave Ste 311, Lakeland Fl 33813 |
|
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! |
| Cdv Transatlantic, Po Box 92050, Lakeland Fl 33804 |
|
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! |
| Cmtg Real Estate Group, 3903 Industry Blvd Ste 4, Lakeland Fl 33811 |
|
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! |
| Coldwell Banker Commercial Saunders Real Estate, 114 N Tennessee Ave Fl 3, Lakel More ... |
|
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! |
| Constellation Realty, 1901 Broken Arrow Trl N, Lakeland Fl 33813 |
|
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! |
| Creekwater Realty, 248 N Kentucky Ave # 202, Lakeland Fl 33801 |
|
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! |
| Crouse & Associates Real Estate Services, 1517 Caldwell St, Lakeland Fl 33803 |
|
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! |
| Daniels Realty Company, 4228 Braemar Ave, Lakeland Fl 33813 |
|
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! |
| Discover Florida Realty, 146 Horizon Ct, Lakeland Fl 33813 |
|
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! |
| Diversified Real Estate Partners, Po Box 90517, Lakeland Fl 33804 |
|
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! |
| Diversified Real Estate Ventures, 122 E Main St Ste 217, Lakeland Fl 33801 |
|
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! |
| Drummond Company, 1301 Grasslands Blvd Ste 100, Lakeland Fl 33803 |
|
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! |
| Eagle Real Estate And Development Co, 4915 Southfork Dr, Lakeland Fl 33813 |
|
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 Of Lakeland, 3522 S Florida Ave Ste C, Lakeland Fl 33803 |
|
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! |
| Expert Referral Connection Limited Liability Company, 4110 S Florida Ave Ste 110 More ... |
|
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! |
| Fearn Partnership, 1804 S Florida Ave, Lakeland Fl 33803 |
|
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! |
| Florida Realty Network, Po Box 7667, Lakeland Fl 33807 |
|
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! |
| Gifford & Associates Real Estate Services, 2225 E Edgewood Dr Ste 10, Lakeland F More ... |
|
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! |
| Grasslands Realty, 1301 Grasslands Blvd Ste 100, Lakeland Fl 33803 |
|
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! |
| Gsr Realty, 2708 Easton Ter, Lakeland Fl 33803 |
|
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! |
| Harper Read Realty Group, 755 Creative Dr Ste 2, Lakeland Fl 33813 |
|
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! |
| Harper Realty & Development Co, 1420 S Florida Ave, Lakeland Fl 33803 |
|
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! |
| Hauger Bunch, 415 S Kentucky Ave, Lakeland Fl 33801 |
|
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! |
| Hollingsworth Group, 6810 New Tampa Hwy Ste 100, Lakeland Fl 33815 |
|
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! |
| Home Pros Realty, Po Box 93154, Lakeland Fl 33804 |
|
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! |
| Homebuyers Information Centers, 2600 S Florida Ave Ste 100, Lakeland Fl 33803 |
|
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! |
| Homequest, 3900 S Florida Ave Ste 109, Lakeland Fl 33813 |
|
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! |
| Hulbert Homes Realty, Po Box 7220, Lakeland Fl 33807 |
|
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! |
| Imperial Realty & Development Co, Po Box 7220, Lakeland Fl 33807 |
|
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! |
| Integrity Care Real Estate, 1283 Lk Deeson Pointe Blvd, Lakeland Fl 33805 |
|
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! |
| Integrity Realty Group, 5832 Swallow Dr, Lakeland Fl 33809 |
|
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! |
| Ira Real Estate Partners, Po Box 90517, Lakeland Fl 33804 |
|
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! |
| J P Quinn & Associates, 4010 Canyon Lake Pt, Lakeland Fl 33813 |
|
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! |
| Jefco, Po Box 6497, Lakeland Fl 33807 |
|
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! |
| Joseph Realty, 1735 Mockingbird Ln, Lakeland Fl 33801 |
|
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! |
| Keller Williams Realty, 218 E Pine St, Lakeland Fl 33801 |
|
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! |
| Ken Smith Realty, 2334 Honey Dr, Lakeland Fl 33801 |
|
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! |
| Kincaid Auction Realty, 3214 Us Highway 92 E, Lakeland Fl 33801 |
|
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! |
| Klusza & Goding, 2130 E Edgewood Dr, Lakeland Fl 33803 |
|
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! |
| Lake Region Realty Company, Po Box 6052, Lakeland Fl 33807 |
|
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! |
| Lakeland Homes And Realty, 2933 S Florida Ave Ste 3, Lakeland Fl 33803 |
|
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! |
| Lakeland Mortgage & Realty, Po Box 6494, Lakeland Fl 33807 |
|
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! |
| Lakeland Properties & Management, 2000 E Edgewood Dr Ste 214, Lakeland Fl 33803 |
|
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! |
| Lakeland Realty, 3003 Bartow Rd, Lakeland Fl 33803 |
|
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! |
| Lakeside Realty & Inv, 2054 E Edgewood Dr # 2, Lakeland Fl 33803 |
|
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! |
| Lamar Professional Services, Po Box 8901, Lakeland Fl 33806 |
|
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! |
| Lambert Real Estate, 304 Doris Dr, Lakeland Fl 33813 |
|
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! |
| Lambert Realty Of Lakeland, 304 Doris Dr, Lakeland Fl 33813 |
|
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! |
| Land South Realty, Po Box 7595, Lakeland Fl 33807 |
|
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! |
| Landsearch, 5529 Us Highway 98 N, Lakeland Fl 33809 |
|
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! |
| Levie D Smith & Associates, 5104 Forestgreen Dr E, Lakeland Fl 33811 |
|
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! |
| Lindsey Realty & Development Corp, 2428 Cambridge Ave, Lakeland Fl 33803 |
|
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! |
| Lindsey Realty & Development Corp, 3913 Cheverly Dr E, Lakeland Fl 33813 |
|
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! |
| Lisette Junquera Corp, 2155 Morgan Wieland Ln Apt 105, Lakeland Fl 33813 |
|
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! |
| Live Florida Realty, 3214 Gardner Rd, Lakeland Fl 33810 |
|
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! |
| Lorio & Associates, 1820 S Florida Ave, Lakeland Fl 33803 |
|
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! |
| Lorio Residential, 1820 S Florida Ave, Lakeland Fl 33803 |
|
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! |
| M & R Investment Properties Iii, 206 Easton Dr, Lakeland Fl 33803 |
|
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! |
| Mahoney Group, 3825 S Florida Ave Ste 5, Lakeland Fl 33813 |
|
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! |
| Majestic Properties, 905 Winnie Ln, Lakeland Fl 33813 |
|
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! |
| Mid-florida Brokers, Po Box 2997, Lakeland Fl 33806 |
|
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! |
| Murphy Business & Financial Services, 2420 N Crystal Lake Dr Ste 100, Lakeland F More ... |
|
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! |
| New Homes And Realty Of Central Florida, 110 E Pine St, Lakeland Fl 33801 |
|
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! |
| Nujak Properties, Po Box 1521, Lakeland Fl 33802 |
|
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! |
| Oak Realty Advisors, 1643 Williamsburg Sq, Lakeland Fl 33803 |
|
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! |
| Oglesby And Company Auctioneers, 2745 Grace Mnr, Lakeland Fl 33812 |
|
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! |
| Olive Branch Realty, 1715 S Florida Ave, Lakeland Fl 33803 |
|
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! |
| Orange Belt Realty Co, 1323 E Parker St, Lakeland Fl 33801 |
|
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! |
| Osler Property Management, 576 Market Sq W, Lakeland Fl 33813 |
|
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! |
| Pickard & Pickard, 307 S Florida Ave, Lakeland Fl 33801 |
|
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, 5600 Hwy 98 N Ste #1, Lakeland Fl 33809 |
|
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! |
| Polk Realty, 4525 S Fla Ave. Ste., 32, Lakeland Fl 33813 |
|
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! |
| Porchlight Homes, 1543 Bartow Rd # 107, Lakeland Fl 33801 |
|
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! |
| Preferred Foreclosure Clearinghouse, Po Box 92346, Lakeland Fl 33804 |
|
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! |
| Premier Homes And Real Estate, 2493 Ladoga Dr, Lakeland Fl 33805 |
|
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! |
| Premier Realty Network, Po Box 7868, Lakeland Fl 33807 |
|
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! |
| Premier Referral Network, Po Box 7868, Lakeland Fl 33807 |
|
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