A Little Right and A Little Wrong

Woohoo a new post! A lot going on for me the last few weeks. Starting a new business. Had a bit of a snafu with my hosting company. If you tried to get to the site and found it was down, I apologize. I’ve switched hosts and everything is stabilized and working correctly. I’m going to try to get back to posting daily.

Some good news, I was quoted in an article that appeared on Creditcards.com a few weeks ago. Well, about a week and a half ago that article was picked up by MSN. Got a nice bump in traffic from that. :)

I was looking through different finance sites and came across this article and video on Yahoo.

I found it really interesting in a few different ways. First the guy makes some good points about the financial aspect of owning a home. Your primary residence is not a good investment. That’s absolutely true. Mr.¬†Altucher isn’t the first one to say this and I’m sure he won’t be the last. In fact the first time I came across this idea was many years ago in “Rich Dad, Poor Dad.” Robert Kiyosaki’s wording was slightly different in that he said your home is not an asset. Nonetheless, there are very strong arguments in favor of these statements: lack of liquidity; high cost of ownership in the form of property taxes, maintenance and repairs; money used for down payment is tied up indefinitely.

What Mr. Altucher has totally wrong in my opinion is that he feels there are no arguments in favor of owning your own home. The key to the discussion is the fact that personal finance is personal. I did not buy my house as an investment. I bought it for the many other things I perceived to be benefits of home ownership: not having an upstairs neighbor that stomped around early in the morning disturbing our sleep, the ability to paint whatever colors I wanted to, choose the carpet I wanted, garden, entertain, the list goes on and on. When you own your own home you can create your environment your way. You can even remodel if you feel like it and can afford it. You can’t do that when you rent.

My take on home ownership in a sentence or two: Don’t buy your primary residence as an investment, buy it because you want to freedoms and the pride that come with home ownership. Owning a home is more expensive than renting so make sure you don’t take on more than you can afford.

If you’re a home owner, what were your reasons for buying a house? If you’re not a home owner, do you want to buy a home? If so, why?

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