Does Home Ownership Still Make Sense For You?

By
Real Estate Agent with BlueCoast Realty Corporation

In the greater Wilmington, NC area, where so many homeowners are hurting due to falling house prices, folks are looking for and deserve anwers to the question that make sense.  That our area home vales rose 60% between 2004 and 2007 didn't make any sense.  That irrational growth meant a long fall and protracted recovery. We may be at the bottom but no one knows for sure.  My message to todays buyer is be prepared to rent out your home if circumstances take you outside the area before appreciation kicks in again.

I know that ours is an inherently transient area. Many folks come, fall in love, stay forever and encourage their families to migrate too. Then, there is the other side of it. Folks who came and go.  Folks who decide for all manner of reasons that the Wilmington area is not for them.  Perhaps the hot summers seem a poor trade for the cold winters of their previous homes or they simply miss their old friends more than they like their new ones.  In addition, we have local pocket markets driven by military buyers whose PCS (Permanent Change of Station) orders call the shots on how long they will stay here.  Folks in the greater Wilmington area are always coming and going which historically kept values from rising or falling dramatically but our last 10 years broke the model on that one.

Home ownership is now what it mostly always was - a long term investment!  Live in it long enough and you'll get something out of it.   That still makes it unique among the the other living expenses in your life  

There's not a chance you'll get a significant rebate on your energy bills or that todays current full price fashion purchase will be worth more than you paid for it when you take it to the consignment store.  The brand new car you drive off the lot will never again be worth what you paid for it today

Real estate, in the form of your home, has the potential, to allow you to patially recoup the expense of living there and the long term potential to grow in value.  

Whether home ownership still make sense is a broader question way beyond the potential financial incentives.  The value you place on living in your own home is a whole other factor for consideration.  I grew up in rentals and dreamed of the day I could paint my bedroom any color I chose and put up as many pictures as I wished.  Those dreams never were about appreciation. 

Those were lifestyle dreams and the essential reason I know home ownership still makes sense for me!  

Posted by

Beverly Femia

The Femia Team


"With Us, It's All About You!"

 

Beverly Femia

 

 Coldwell Banker Sea Coast Realty

1001 Military Cutoff Road, Suite 101 Wilmington, NC 28405

Fax to 1-866-784-3089 (Toll Free)

Beverly Femia

Broker / REALTOR®

Email:Bev@CoastalAreaLiving.com

Phone:Bev at (910) 279-9794

Search:Wilmington Area Propertywww.CoastalAreaLiving.com

 

 

 

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Rainmaker
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Gary Frimann, CRS, GRI
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Homeownership makes sense to me-- always.  When compared to rents (at least in my area) it pretty much always makes sense to buy vs. rent.  At the end of 30 years (or maybe before) you usually walk with some equity rather than a shoebox full of rental receipts.

Aug 18, 2012 03:56 AM #1
Rainer
117,910
Beverly Femia
BlueCoast Realty Corporation - Hampstead, NC
Broker Realtor Stager - Greater Wilmington, NC Are

Gary, on the financial side, you are on point.  However, folks should understand how long they need to live in a home in order to sell and break even, let alone have a gain.  And they need help understanding that the maintenance the landlord currently provides will be their financial responsibility when it's their home. 

Aug 18, 2012 04:24 AM #2
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Rainer
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Beverly Femia

Broker Realtor Stager - Greater Wilmington, NC Are
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