Brilliant thought! The New York Times published this post … shared below on MiamiRealEstateCafe.com because there truly is much “more to homeownership than a line item on a net worth statement”. Carl Richards and Ron Lieber go ‘back to basics’ and I (for one) thought their points were spot on, and well worth sharing :
“It is possible, as a homeowner, to make very little money but still buy plenty of happiness.” Consider the following:
1. Buying a home solely as an investment is a bad idea.
Treating your primary residence as a good, old-fashioned home (and forgetting about the possibility of its being an investment) leads to greater happiness. I am not saying that owning a home always makes you happier than renting, which is another discussion entirely.
2. If you aren’t thinking long term when you buy a home, your odds of disappointment are high.
I have often heard people from my parents’ generation say that their home was the best investment they ever made. But that is simply because it was the only thing they bought and held on to for 30 years. Often when you do the math, the home barely keeps pace with inflation. However, because they avoided making many of the classic behavioral mistakes (buying high and selling low) that we make when we invest in the stock market, it was still the best investment they made during their lifetimes.
3. Don’t treat your home like a piggy bank.
Before the the last 10 years, people thought of the family home as a sacred place and not something they thought about flipping at the first sign of profit. People didn’t treat what the last house in the neighborhood sold for as a quote for their own home, and they didn’t get an appraisal every six months so they could get a new line of credit. In fact, I think it is fair to say that most of the time people didn’t know or care what the family home was worth. They lived there and didn’t plan on leaving.
4. Owning a home isn’t for everyone.
Not everyone is suited to owning a home. For many of us, times are different. We might be required to move more often for work, and that introduces some complexity that didn’t exist for previous generations. In those cases, it might be better to rent instead of playing the buy-and-hope game. If you find yourself in the fortunate situation that you can buy a home someplace where you plan on staying for a long time, treat it as a home and not as an investment. You will be happier for it.
If you are considering buying or selling real estate in Miami, and are looking for an experienced Realtor to assist you, please call me on my cellular 305-793-1365 anytime – or send me a message here. The Restivo Team.