Everyone tells you that you should own your own home, as it’s an investment. An investment is something that produces income. A home is NOT an investment no matter how you look at it. A home costs you money and it’s negative cash flow.
If your home is not paid off you are paying a mortgage. But, and here is the big BUT: you have the following:
1. Taxes.
2. Insurance.
3. Utilities.
4. Heating.
5. Maintenance
The experts will tell you the following:
1. You can’t afford not to buy.
2. Buying can be cheaper than renting.
3. Homes make a great investment.
4. The government wants you to become a homeowner.
5. You don’t need a huge down payment.
6. You don’t need perfect credit.
7. It’s never too late.
My advice:
1. It can make sense to own your own home if you can afford IT! A lot of the bankruptcies today are caused by people who bought too much house.
2. You can afford not to buy.
3. In some sections of the country it’s cheaper to rent than to buy a home.
4. Your home is not an investment.
5. Without a good down payment, you are increasing the costs of your home ownership. Paying more interest.
6. You don’t need perfect credit but they charge you for it. Higher interest rate.
7. Even though the market prices for homes are lower, can you really afford the long term debt?
Before you buy a home, consider all the associated costs. You will be glad you did.
Jacques
CreatingWealthThatLasts
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