There is so much being talked about today whether the owning real estate is the smart choice or if renting is wiser.
It's always been the American Dream to own real estate...not only for the quiet enjoyment of living in what you own, but also for the financial and tax benefits that home ownership affords us.
The past 5 years have been brutal...ask any homeowner who has tried to sell their home if they have owned for less than 10 years...or if they were caught up in the re-fi mania that enabled all homeowners to cash out, cash out and cash out their equity."
I mean seriously...It got crazy.
Unfortunately, we were crazy enough to forget the simple law of physics...what goes up, must come down.
And come down, it has! WOW!
So now, there are those who are saying, "Hey, don't buy...Rent!"
There are some who have to rent. Hardworking people have lost their homes under distressed circumstances.
Although, for those who have a choice...well, let's just say that I have never read or heard anywhere that the new American Dream is to rent.
Why are so many foreign investors flooding the residential real estate market in the US? Because we are one of the only countries that has fixed mortgages. Foreign investors get it...we have a sweet deal going here!
My friends at KCM Blog posted a great study by 2 independent business professors who set out to prove that home ownership is not a good, sound financial decision...AND they still published their findings when they were proven wrong. Good for them!
So, when the naysayers are saying homeownership is a good decision, and you have interest rates that just beginning to rise, and home prices that are so low...Well, you make the decision you think is right for you.
For me, not as a real estate professional, but as a mom, I wish my two college students were a few years older to begin taking advantage of the current conditions. I would be doing everything I could to help them decide this was a good thing to do!