Why Rent When You Can Buy? Why Now Is the Time To Buy!!

(Image courtesy of Stuart Miles/ FreeDigitalPhotos.net) For those of you who have been following me, you are aware by now that interest rates are at an all-time low. This makes now the perfect opportunity to stop putting money in other people’s pockets and making them rich, and instead start making yourself rich. In fact, research shows that homeownership is the biggest source of wealth for most individuals. To illustrate this point, let’s say you are renting a property and each month you pay $700 in rent. You live in the property for 8 years. At the end of the 8 years you would have paid a grand total of $67,200. Ouch! You made your landlord almost $70,000 richer and what do you have to show for it? Nothing. Now, let’s say you decide to purchase your own home for $100,000. 8 years later you decide to put it on the market and now your own home is worth $240,000. Guess who just made $140,000 at the end of the 8 years? You did. This is what makes homeownership so attractive- you are investing in your best asset- yourself! Now, I can just hear pessimists saying, “Well if something goes wrong in your home, you have to fix it, whereas in a rental, the owner will fix it”. This is where education is most important. There are many types of homeownership. If you want the benefits of homeownership without all of the responsibilities of maintenance, maybe a townhome or a condo is the right choice for you. In addition to resale value, your home can often be used as a vehicle to make even more money, by using the equity for other avenues. Consider these options: the husband and wife who uses the equity in their home to open up a line of credit and with that line of credit purchased multi-unit apartment rentals; or the aspiring young man who used the equity from his home to start his own business; or the mother who used to pay for her daughter’s wedding; or the single mother who paid for her son’s college with home equity. The options are endless! Unfortunately, there are some among you who may find that due to credit issues, purchasing a home is not an option at the moment. I offer this advice. Do not be discouraged, but instead do whatever it takes to rebuild your credit. There’s a great article with tips on how to rebuild your credit that may help (click here). Fixing your credit is an attainable goal and with focus and determination, you can soon be in your own home of your dreams. In closing, now is the time to stop investing in other people’s dreams and start investing in yours! Make homeownership your priority and your reality! Carmelle.