The Silver Lining in Real Estate
With all of the doom and gloom we see in the headlines about the housing market, Fannie Mae came out with its’ housing reports a few months back. It is full of a lot of very depressing news on the housing market.
Hidden within the report, were some very strong and positive beliefs about home ownership.
GUESS WHAT? Most people do not purchase a home for financial reasons. In fact, four out of the top five reasons are NOT financial.
•1. Good Place to raise children 80%
•2. It is a place your family can feel safe 79%
•3. It allows you more space with your family 75%
•4. You can control your own personal space 69%
•5. Paying rent is not a good investment 62%
What other investment can provide the benefits of home ownership. Stocks, bonds or even gold will not give you these benefits. Why do people think of home ownership as a financial investment? Historically home ownership builds wealth faster than any other financial investment. Sure, it cycles up and down like any other market and the last few years have not been great. However home ownership is not primarily a financial investment. This is an investment in your family. Does any other investment come close?
There are some people who make a living investing in real estate, but for the vast majority of Americans the primary reasons for buying a home are the same now as they were years ago. Homeownership is not about the financial investment you make, it is about the emotional return on investment you receive.
Think back to when you were a child, if you were lucky enough to live in a home. What do you remember? I remember all the great times I had being with my family, playing in the neighborhood with my friends. I remember feeling safe and warm, and I still get those feelings today when I walk into my home. This is why a major part of the American dream is home ownership. A house is not just an investment for most people, it is a place they will create the memories of a lifetime.