We came across quite an interesting article by Brett Arends where she explains why owning a home is not all that bad.
Sure, maybe there's more gloom to come in the housing market. But when running covers everywhere declare that owning a home does no longer make economic sense, it's time to say: Enough is enough. This is what giving in looks like, everyone has given up.
After all, at the peak of the housing bubble three years ago, editors declared investing in real estate is the way to go, and always asked the question will your property make you rich?
But it's not enough just to think otherwise. So here's a few reasons why it's a good time to buy a home:
One. You can get a good deal.
Especially if you are a good negotiator, after all it's a buyer's market. There are less buyers, less prospects, resulting in better offers out there. And prices have gone down a long way from their peak - about 30%, according to housing specialists. Yes, it's mixed, as some areas are only down 10%. Will prices fall further? Sure, they could, but you can never catch the bottom. So buy now, it's time, and it doesn't matter in the long run.
Two. Mortgages are cheaper.
You can get a loans for up to 25 years for as low as 6 percent. What's not to like? These are very low rates. Just two years ago, the average going rates were hovering at around 9 to 10 percent. If inflation picks up, your mortgage rates won't. And if deflation kicks back in, your rates will go down further.
Three. It'll be yours.
You can paint your kid's rooms wall bright green, choose your very own dining furniture, have that jacuzzi you want in your bathroom. For renters, these changes are impossible. Quite simply, you'll feel better about your owning your own place.
Four. It's risk capital.
No, your home is not shares at the stock market and you shouldn't view it this way. But the economy will pick up sooner or later, and when it starts booming again, your property's price will go up. Equity in a home is the best way of linking your portfolio to the long term growth of the economy.
Five. It's forced savings.
If you can rent an apartment for $2000 instead of buying one for $2500 a month, renting may make sense. But will you save that $500 for your future? A lot of people won't. Most, I dare to say will. Once again, you have to do your math, but the part of your mortgage that goes to your principle payment isn't a cost. You're paying yourself by building equity, so it's a forced monthly saving.
Six. Sooner or later, the market will clear.
Demand and supply will eventually meet. The population forecast is to grow by more than double since the beginning of the decade. This means a big number of potential home owners in the near future. Meanwhile, the housing surplus will work itself out.
There are plenty of properties from all around the Middle East on ClassicArabia.com , have a look, you might just find what your looking for.
We hope you enjoyed this post and would like to give credits to Brett Arends and the 'Internet' for tons of useful information.