Five Reasons Not to Rent...

Daily Real Estate News | August 30, 2010 | 5 Reasons Homeownership Trumps Renting

The seemingly endless run of bad housing news is discouraging some potential home buyers from considering a purchase. But the truth is that the advantages of homeownership have very little to do with investment gains. The best things about owning a home have a lot more to do with personal comfort and satisfaction.

Here are five of them:

1. Be your own landlord. The bank can only kick you out if you don’t pay; a landlord can be much less dependable – deciding to sell the property or choosing to live there themselves.
2. Paying the principal is forced savings. Yes, it’s possible that home prices will fall further. It is also possible that your 401(k) will lose value. But over the long haul, both are likely to enjoy modest gains in value.
3. Fixed-rate mortgages never rise – and eventually you pay them off. With mortgage rates at record lows, people who buy now are locking in real bargains.
4. Good schools. Family-sized rentals are harder to come by in areas with excellent public schools.
5. Spacious properties in pleasant neighborhoods. Sizable homes in attractive communities are almost always owned – not rented.

Source: The New York Times, Ron Lieber (08/27/2010)

Good news for Michigan!

The top 10 housing markets of the future

3. Michigan

Biggest home-price increase projected in 2014: Detroit-Livonia-Dearborn metro

Forecast 4-year price increase: 33.1%
Current median price: $51,000
Prices to reach trough in: 2011 Q2
Median family income: $54,400
Population: 1.92 million

Since reaching a peak in 2006, home prices in the Detroit area have fallen 60.5%, according to the Fiserv Case-Shiller Indexes. As homes have become more affordable — the median home price in Detroit is lower than the median family income — demand is expected to pick up. Prices are forecast to jump 33.1% over the next four years. George Moma, a broker with Century 21 Dupont Realtors, says the growing prevalence of short sales over foreclosures will help drive up the median price in the Detroit metro area. He adds that the area is attracting interest among international investors from the U.K., Dubai, Russia, India, Ireland and France.

Index used to calculate historical home price changes: Case-Shiller

"Sometimes as a country we over react and do not let the facts guide but rely on "emotion."

The attached article is a good look at what could take place, given the "facts."

If you believe we can correct some of the basic economic issues we are facing ( that we quit spending and reduce the uncertainties created by Health care costs, tax increases ) and get the private sector feeling positive about the future again....we may see very well see this problem arise....what do you think?"

http://articles.moneycentral.msn.com/Banking/HomebuyingGuide/HomebuyingGuideDyn.aspx?cp-documentid=25036785&GT1=33006

Lower interest rates equal more home buying power!!

Lower Interest rates equal more home buying power!

We know interest rates are historically low, but do we know what that means? For instance a $150,000 mortgage at 4.5% interest rate is a payment of $760.03 (p&i) vs. the same mortage amount at 5.5% is $851.68 (p&i) that's a savings of $158.97 every month!

What would you do with the extra dollars??

Great article... Tell anyone and everyone if they can afford to take advantage of these great rates they absolutely should!!

http://news.yahoo.com/s/ap/20100729/ap_on_bi_ge/us_mortgage_rates