Comments on: Owning a Home Isn’t Necessary for Building Wealth – Make Sure You Buy a Home for the Right Reasons

By: Lifestar

Lifestar — Tue, 23 Aug 2011 03:45:13 +0000

The author is right by telling consumers “Do not buy a home for the wrong reasons!” The truth is paying mortgage on a long-term basis–(i.e. incurring debts for at least two or three more decades) indeed is a big liability and incurred huge financial risks when none of us know for sure what could happened to us in the next two to five years let alone having to bear the financial burden to pay a huge monthly mortgage and possible huge repair costs!

It is one thing if you could pay more than 50% as down payment and incurred a shorter time-frame to completely paid off your mortgage, but it is another story when you have to sacrifice almost all of your life-savings just to make the down payment in the house and still have to be financially liable for the mortgage for the next two or three decades assuming nothing goes wrong in your job and nothing goes wrong in your health or worst of all, being physically injured and impaired as a result of third-party liability incidents!

So, buying a house is never a simple decision; and it should not be a quick and impulsive decision. Therefore, buying a house has to be the right decision and right reason for you for your true and desirable benefits, not the proclaimed benefits on homeownership by the media or by majority of the unreliable sources! Do as much research as possible and evaluate your own needs and desires! Question the validity and authenticity of the typical comments (i.e. exaggeration on the benefits) made about owning a home and learn as much as about the pros and cons in homeownership!

By: tony

tony — Sun, 20 Jun 2010 02:44:15 +0000

don’t be the bank’s sucker. paid for the home all in cash. the bank is the reason so many home owners are now living worst then before they own their homes. once you are in foreclosure, you will loose the liberty to borrow anything from any bank for 7 long years. also, if you are in foreclosure, the bank sell the house, they get all the money. but you get nothing. think about it.

By: Chris

Chris — Thu, 24 Sep 2009 14:15:29 +0000

You have some smart readers and this is a very timely article. I like the comment “you are not a homeowner until you actually OWN the home”. Very astute point and one that cannot be ignored.

I bought (got a large loan) my home over a year ago. It is nice having a place to “settle”, but in this short period of time I must say homeownership is overrated. I still believe, though, that building equity in a home is better than not, all else being equal. IMO,the true path to wealth is owning OTHER people’s homes, not your own.

By: ATVs for Sale

ATVs for Sale — Wed, 23 Sep 2009 21:10:04 +0000

This is a timely article for me. I am getting close to putting a downpayment on my first non-rental apartment. I feel somewhat pressured by society to do this, but at the same time I can see a lot of benefits of owning. Still I will take the time to make this decision quite carefully

By: ctreit

ctreit — Wed, 23 Sep 2009 00:29:08 +0000

I own a house for many reasons. But my major motivator is making my house into a home for my family. I love seeing my kids and us parents enjoy our familiar surroundings. I need to live somewhere. So, why not buy a house? We did not stretch ourselves financially when we bought the house and we are all very happy that we have such a nice place to live in.

By: MoneyEnergy

MoneyEnergy — Tue, 22 Sep 2009 17:36:17 +0000

Good points. More and more I’m reconsidering my old ideas about owning a home. I’m still a renter, and do like the flexibility of being able to move. But if I had had the cash, I would have bought a house by now. Might be a good thing, this is forcing me to reconsider and fully weigh the decision.

By: David@DINKS Finance

David@DINKS Finance — Tue, 22 Sep 2009 17:20:14 +0000

This is a tough one. I would love to own a home, but I’m in my 20s and not sure where I will end up (work and whatnot).

When I do buy a home, I plan on doing it for clear financial reasons: I found a house that is arguably undervalued, that is not an emotional buying, that is in an area that is “more than likely” to increase in value, etc.

By: NCN

NCN — Tue, 22 Sep 2009 16:53:18 +0000

We have bounced around the idea of buying a house for some time. We are debt free, and currently live in a house provided as part of my compensation. Effectively, we are “renters”. On the pro-side, it would be cool to have our own place. On the neg-side, I really hate the idea of paying interest and dealing with some of the hassles of home ownership. Lots to think about…

By: Honey

Honey — Tue, 22 Sep 2009 16:15:41 +0000

My boyfriend and I are 30, and we never plan to own a home until we retire because that’s the soonest we feel that two things are true: we’ll be in the same place for awhile, and can buy the home outright. As soon as we pay off our consumer debt, we are NEVER financing anything again.

If you are still paying a mortgage, it is still “rent” – just rent to the bank. Equity is a myth unless you plan on (and are able to – good luck in this economy) sell the home for the asking price within the time frame you specify AND either buy a significantly smaller home or go back to renting. That is the only way I know of to pocket the money you’re “making.” However, most people do neither of these things, and then brag about their equity. What are you going to do, get a HELOC to consolidate your credit card debt and give the banks a seizable asset on a golden platter?

By: Miranda

Miranda — Tue, 22 Sep 2009 14:45:44 +0000

I prefer to think of “owning” (remember, you don’t own til the mortgage is paid off) a home as a purchase. A very large purchase. There are a lot of intangibles that I enjoy about owning my own home, and the tax deduction is usually enough to keep in one tax bracket lower, but I don’t see it as a pathway to wealth.