Picking apart a recent article about the current real estate market…
Just read an interesting article over on AOL Real Estate and it said there are 4 myths in real estate today:
- Real estate is still a great long-term investment
- People are giving up on the suburbs
- We’re seeing a permanent shift to renting
- Buying is better than renting now
Let me pick this apart one point at a time:
Number 1: It is impossible now, or at any time to say with 100% certainty that real estate is a great long term investment. It is a great investment IF done correctly!
There is ALWAYS a risk with investing. You may make money or you may lose money. This is true with any investment, whether it is stocks or real estate or even gold.
This can be argued in countless ways. It really boils down to the fact that owning a house is much more than a financial investment.
Number 2: Absolute BS. I deal with buyers all the time and can say that in our area there are plenty of people that do NOT want to live in the suburbs OR in a city. They want some elbow room, some privacy, some room between their house and the neighbors. Sure, there are some people that DO want to live in the suburbs or in a city. They completely overlook that some people do NOT want to live in the city or the suburbs.
Number 3: Permanent?
Yeah people NEVER change their minds and change never happens.
The reasons we have seen an increase in the demand for rentals is because the morons at the banks and in Washington have made it harder for some people to get a mortgage. We went from giving a mortgage to anyone that could fog a mirror to having lending requirements that are probably just a little too strict.
Also, the current economy / job market / stagnant income issue is a HUGE reason why many are renting instead of buying.
Number 4: Buying is better than renting? For who? Maybe they should slow the freak down and realize that what is right for one person is going to be a very very bad decision for someone else!
Listen if you are thinking about buying a home in Upstate South Carolina, then maybe you should take the first step and determine IF owning a home is right for you.
Just because you can do something does NOT mean you should.
This includes buying a house…