Do You Need To Even Buy a House Nowadays?

Do You Need To Even Buy a House Nowadays?

Unless you've been in hiding over the last 3 years, we've had one of the worst housing slumps since the Great Depression. Housing prices have plummeted. Thousands of people have decided to rent rather than buy. Millions have been foreclosed on, and there are millions more that this is getting ready to happen to. Quite simply, the whole realty ball game has changed. Which means that the basic assumptions we've all had about homeownership really need to be challenged. Few things are a given in a market such as this. Let me explain.

An element of the American Dream is without question homeownership. It's really a goal of every single American to own your own home. Homeownership is also seen as a way to wealth in our country. Purchase a house, repay it, and have a few hundred thousands dollars of assets. Unfortunately, throughout the market we've had over the past several years, this all hasn't worked out exactly as planned.

Over the past decade or so, investing in a house was easier than it has ever been ever. Too easy, in fact. This lead to lots of people buying houses they couldn't afford, which lead to the massive foreclosures we're seeing now. You wonder if acquiring a house these days is also a good plan? Is It Advisable To invest in a house, or should you really just rent for quite a while until the market clears up? We are going to try to tackle this question on this page.

Okay, therefore the real question is...should you buy a house in today's world. Well, unfortuantely, there's really no right or wrong answer, just guidelines. Historically, people bought houses partially to earn money. Sure, it's really a place to live and raise your family, but it's also a way a normal diligent American family can build a retirement. Those times may be over. They're certainly over for the next several years or so. Some experts even say 10 years. The housing collapse isn't something that's going to straighten itself out in a year or two and then it's normal again. This is a new normal! So, you won't want to invest in a house with earning profits in mind. Invest in a house for other reasons, but not for making money!

Having said that the single most critical thing you might want to take into account when purchasing a house is price. Since we're probably not likely to have any appreciation for quite a while, you should buy right, if you're not going to find yourself in trouble with a house you cannot sell, just in case you want to sell it. Another issue is downpayment. In the old days you put down as little as you could. In this market, that's a prescription for not having the ability to sell your house, since your mortgage is too big. Today, you must put down just as much as you can.

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