Reasons Why You Should Buy Property Today

Rose B asked:

For a long time, the real estate market has been an important investment for a lot of people. Multimillionaires and even billionaires got their taste of riches because of the boom in real estate in the early years. Today, there are whispers that prices of properties are slowly dwindling down. This would probably scare most people opting to just rent houses instead of buying one for their family or themselves.

If you really cannot afford to include in your budget a monthly mortgage, then by all means do not purchase a property, stick to renting first. But if you can afford, it is advisable to buy your own house. If you have a house and thinking of selling it, don’t. You will incur more cost by selling your house and renting an apartment instead. Your costs will include 4% stamp duty and prices falling to 10% even 20% from your original selling price.

This fact may be a shock but you have to know that houses are not investment. You buy your own house because whether the market rises or falls, you still need a roof over your head at the end of each day. A house only becomes an asset if you sell it eventually for a profit. If you decide to sell it someday only to downsize or move to a smaller place, then your house is a mere property, not an investment. A lot of people thought that having a house means having a cash generating machine, but in reality, it is not. Even in cases that it generates money for the owner, the period between buying and selling the property can last up to 20 years or longer.

Even though mentioned above that property is not an investment, it remains a fact that it is a long-term investment. Even if you treat a property as your shelter, still, you will not buy anything especially for a large sum of money that will not appreciate in value in the future. A house is different from a car, for example, because a car, after five to ten years will lose 35% of its purchase price while a house will gain more compared to its original purchase price.

Another very good reason to purchase your own home is so you can be your own master. If you are renting in an apartment, you already surrendered the right to decorate your own living space to your landlord. Your personality might not even reflect your place of dwelling because there are a lot of restrictions in renting. Plus consider this fact; you are paying for a place on a monthly basis that will never be yours in the future. You can maybe add a little more to your monthly rent and you could have been paying for the monthly mortgage of your own home.

As long as you can afford to own a house, as long as your credit can afford you to loan from lending firms, go get yourself your own house. Do not take notice of the doomsayers warning you that prices will soon fall. They are probably wrong in their predictions anyway.

Scottsdale Real Estate Market

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