Whether to Buy or whether to Rent

We are in an interesting time in real estate. Every decision we make about our housing options seems to be tied to money. Articles are written explaining that prices will still drop and therefore buying a home makes no sense. Some people have judged whether living in their home over the last ‘x’ amount of years was a good thing based purely on the profit they received (or didn’t receive) when they sold it.

Wait a minute. Did we buy the house to make money? Or, did we buy our house because we wanted a home for our family? We have posted on the reasons why buying a home today still makes sense financially. There are other reasons that people buy homes besides the investment however.

As a matter of fact, Fannie Mae just came out with their National Housing Survey which asked the question directly. The study broke up the answers into financial and non-financial reasons. The top four reasons and six of the top ten reasons were NON-FINANCIAL. The top four are below:

Is this a major reason to buy a home?

  1. It means having a good place to raise children and provide a good education.
  2. You have a physical structure where you and your family feel safe.
  3. It allows you to have more space for your family.
  4. It gives you control over what you do with your living space (renovations & updates).

Should this surprise us? Aren’t these the same reasons our parents bought their home? Aren’t these the same reasons we purchased our home?

The Bottom Line

For the last 200 years, the financial benefits of homeownership have always taken a back seat to the more important reasons for buying a home. Think twice before you make a decision based purely on the dollars involved.

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