A Home is Where you LIVE

Carla an excellent post... and house truly is more than an investment for many.  It is where we realize dreams and create memories. 

Congrats on the feature post. 

I see lots of comments here that indicate there are reasons to consider buying right now but few reasons given.  Those reasons were what I was looking for on a recent blog post http://activerain.com/blogsview/1823392/is-there-reason-to-buy-a-home-or-should-we-all-quit- I thought a compilation of sound reasons would be a benifit to us all.  Here's hoping for a few more responses

Hercel Spears

Carla - It's not surprising people are scared about buying a home right now, even though it IS a great time to buy one.....bargain basement interest rates, high inventories, and soft prices means you probably won't be able to get a deal like this again in our lifetimes.

So why are people so scared? Because the unemployment rate is around 10% and expected to go higher....doesn't exactly give people the warm fuzzies when many probably wonder if their jobs will be next....then there's the whole gangster bankster brigade who have pretty much guaranteed people will never trust lending institutions again.  Then one only has to watch the short sales, foreclosures, and bankruptcy numbers stack up....and it's hard not to see yourself ending up as part of that nightmare bandwagon.

And if you ARE blessed enough to be in a position to buy a home, and have the chutzpah to move forward with the process, of COURSE you should worry about it losing value before you even get to the closing table! Sliding home values in many areas can make buying a car seem like a better proposition...after all, homes never used to be considered depreciable assets... and if that's what they are right now in some markets, then you damn well better negotiate a price that doesn't put you in the negative on closing day. Or, if that's too much to ask, renting could very well be a good option til things even out. Or, if you are intent on buying a depreciable asset but not completely losing your shorts,  then dang it, go get yourself a Ford Escort and some comfy blankets and move right on in!  :)

A home is where your heart is and your heart is your family

Carla:  As they say, Home Sweet Home.  Thanks for your thoughts.

I am reminded of this when I shop with investors, we look for completely different things than if they were buying the home to live in.

I like to think that people will know when the time is right for them...but a little encouragement never hurts.  I especially like the comments from people above.  Some people do get very lucky at times, but sometimes people need to also realize that the perfect time to buy really does not exist in my opinion.  There are people passing up some great deals right now and maybe they will get a better opportunity in the future, but maybe it will be very similar to what they can get right now.  Hindsight is always 20/20, but forsight is a bit trickier.

Thanks for the post!

Carla, Thanks for this post.  Even in declining market conditions, buying a home can still make a lot of sense for a lot of people. For people coming to me that aren't sure, I counsel with them and help them to be look at their short and long term circumstances and goals and make sure that owning fits their own situation even if the market doesn't turn around right away.

Thanks for sharing your story and the great post!  I agree with you 100% and have been telling the story of owning a home as a place to live for quite some time.  It's amazing to me that owning a home became an investment that was used as a checking account and now that all of that has changed, Americans stall when it comes time to buy.  Owning a home is the American Dream and is so affordable right now.  I only wish that everyone felt that way!

What new buyers need to focus on is not whether the home will gain or lose in value - but whether they can comfortably afford the payments on their current income. As you said - it's a home. It's a place to put down roots and build memories. And it's a place to call your own.

And, when locked into a low interest 30 year loan, those house payments will become less and less expensive compared to renting in years to come.

Of course, they should also consider whether they plan to stay in the community long-term, and whether they're ready to take the responsibility of caring for and maintaining a home. Some would rather call the landlord.

I agree completely. We have so many buyers in our market that are buying homes they don't really like because it is a "deal".  If I wanted a "deal" and didn't care about my house I would just rent a hole in a wall somewhere!

I think we've lost sight of what you're saying in our society partly because of the 'financial gurus' talking non stop about a home being a liability. As if a lease isn't a liability. You're right - there's only the two choices. Oops, forgot one - living 'on the dole'.

Carla ~ I use this slogan, "A house is not your home until you make memories in it" or as a caption under a family picture" Memories like these make your house a home". 

It must be a pretty good slogan because I have shared it with others who have then used it or a similar slogan on their business cards or in advertising.

I like the way you drive home the point!