10 Reasons To Buy a Home

[Ted Harris]

Enough with the doom and gloom about homeownership. WSJ article below explains why owning a home is a good thing. I agree especially if you know you will live there at least 3+ years ....

1) You can get a good deal
2) Mortgages are cheap
3) Tax savings
4) It'll be yours
5) You'll get a better home
6) Inflation protection
7) It's risk capital
8) It's forced savings
9) Lots to choose from
10) Eventually market will clear

What are your reasons ... good or bad?

Article

[Vikram C.]

Originally posted by Bryan Hancock:

The truth is that inflation helps ALL net debtors because their debts are decreased in real terms.

Bryan, I am sure you know this, but I want to make your statement more complete by qualifying that inflation helps most when you have debt with a fixed nominal interest rate. Many commercial loans can have an ARM where the underlying index will be based on a real interest rate, in which case whether you benefit or not from inflation will depend on the increased cost of debt service compared to the increased revenues from higher rents.

Also, as I have pointed out earlier in another thread, higher interest rates increase the discount rate used by future investors and can depress property values if you try to sell an investment property.