Homes are an investment in your quality of life

Posted on 12/14/10 No Comments

4305 Somerset Valley Lane in Raleigh, NC

A few years ago, we watched a lot of home buyers make buying decisions based purely on financial reasons. We don’t mean financial reasons relative to staying within a spending budget or mortgage amount qualified for—which makes perfect sense—but more so as a method by which to grow money, like stocks and mutual funds.

Homes should really be considered investments in your quality of life. And what’s more important than that?

We are blessed by the fact that homes throughout the Triangle area, on average, are selling for more than what their owners paid for them. That’s terrific. Still, that return should be considered a benefit of home ownership, not its purpose. And in that difference lies part of the reason our economy took such a hit.

One of the problems with buying a home simply for the return is that it challenges people to take risks. All investments carry risk but some much more than others. Homes are considered quite safe, provided you made a decision based on your comfort level with the mortgage. Being, as they say “mortgage poor,” does not make for a comfortable lifestyle. Therefore, you may be buying for the wrong reasons.

Houses today are selling at very attractive numbers. Interest rates are also very hard to pass up. In short, now is a terrific time to invest in a home and live very comfortably for many years because of exceptionally low 30-year fixed rates. In fact, mortgage rates continue to slide while home values, since the spring, are inching upward, which should further enhance the appeal of buying a home in today’s market.

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