Marino on Money: May 13
Does it make sense to own a home?
If you are going to be in the home for at least few years, there are advantages to owning. We hope the home will appreciate in value over the long term. There are too many variables to know which parcels of real estate may either increase, or decrease in value. I have no idea where prices are going for any particular area.
As you make mortgage payments, you have the opportunity to build equity as you pay down the balance. There are also tax advantages for some people who pay income tax. Eventually you could pay off the mortgage and have no more payment. Even if your home only maintained it’s value, or even declined a little, owning it free and clear may be a better option than renting. So if you are going to be in the home for a few years, and you can afford all of the expenses, I would definitely consider buying a home now.
The viewer asked about staying out of the real estate market until things settle down. Good question. When things settle down, however you define that, what effect do you think that will have on prices? There isn’t any way to know for sure, so I wouldn’t factor settling down into my decision process.
Here is an observation. Mortgage rates are at historic lows. Prices in many areas have declined dramatically. If you need to buy a home this doesn’t sound like a bad time. But, is it really a good time, or should you wait? I could give you my best guess, let me just grab a quarter. Oh, sorry, I don’t have any extra change. I did, but that was before the bear market.
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