Don’t Give Up on Home Buying Yet
Let’s face it, Americans love to spend money. Figuring out a way to force us to save is extremely important. There are many ways to force savings, but the most proven and effective way is through the purchase of a home. Due to the fact that a mortgage payment forces you to put equity away for a more secure future, a home is becoming less and less of a liquid asset. 10 years ago, you could buy a property and have it sold before you closed. Now, you better be ready to hold on to your home for a long period of time. This is a very good thing for those of us that need a little push to save money.
That being said, many have turned to leasing as an option. It all depends on a person’s time frame. If they only intend on being in the property for a year or two, leasing makes a lot of sense. However if they are planning on being there for 10 years, buying right now still makes more sense.
Much like a 401k plan, forced saving is a necessary tool for retirement. Being disciplined in savings for Americans has proven to be very difficult. Buying a home with a long term financial plan can be a great avenue for retirement. Talk to your financial advisor about other forced savings options, but consider home buying still a great opportunity now and in the immediate future.
