Bucking The Real Estate Trend-Waynesville and Maggie Valley Real Estate

Home ownership has often been considered a critical part of the American Dream — an unwritten privilege of living in America bestowed on its financially secure citizens.

Owning a home was the ticket to financial security and, for several years earlier this decade with home values soaring, seemingly the best investment Americans would ever lay their hands on.

But in the wake of the housing crisis — with home values down 35 percent or more and with little robust growth seen on the horizon — it may be time to ask whether buying a home is still so vital to financial happiness.

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Buyer’s remorse: Renters do not need to concern themselves with many expenses, which they can use to invest elsewhere. Fees to frown upon: Property taxes, Utility bills, Maintenance bills, Downpayment, Closing fees

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The current economic environment is making a strong case that renting a home and smartly investing your savings can be just as rewarding.

When making the decision to buy vs. rent, people usually consider several factors — the rent vs. mortgage payment being the primary question. But there are other financial factors to consider, including:

* Your insurance premium.

* Property taxes (which are usually higher than any tax deduction you get from your mortgage interest).

* Maintenance (pipes break, electricity problems, etc.).

* Utilities (utilities and maintenance for renters is often reflected in the rental price, but it’s not reflected in a mortgage when you own).

* Yard work, pest control, remodeling, etc. (again, rents usually have this built into the price, but mortgages don’t).

And let’s not forget those initial costs that always seem to add up to more than you expect:

* A down payment of at least 15 percent, which is $90,000 on a $600,000 home.

* Closing costs, usually 5 percent of loan amount, or another $25,000.

* Initial remodeling costs.

Read the rest of the article here. (Worth it.)