Posts Tagged ‘fannie mae’

Homeownership Viability

Is home ownership still part of the American dream, or has it become the worldwide nightmare? Nest Egg in Home Ownership?The Kansas City Star published today:

Two-thirds of Americans still see a home purchase as a safe investment, but that’s down from 83 percent in 2003, according to a study by Fannie Mae.

I’ve watched people, particularly in professional sectors that require relocating every few years, move up from one home to the next higher-priced category and build a pretty good-sized nest egg over time.

We bought our first property to live in about a decade after we hoped to retire and a decade before we planned to retire. In other words, in our 50s. After spending most weekends doing yard work, gathering and splitting firewood, installing shelves, repainting the pantry, recaulking the windows and doors, and so on ad infinitum, we’re picturing our next nest to be a rental with a handsome groundskeeper.

However, we’re in a fairly good position, even buying our first “home” (we had rental property) way after most our age. It’s working for us, because we’ve cycled equity, effectually using our dollars two or three times, and owe only about a third of what others who bought around the same time do. In other words, we could sell for a profit, even in a down market.

Owning a home can be boon or bane, mostly depending upon what you know going into it. Have you figured in all ancillary costs and it still pencils out? Or are you looking only at the monthly payment? (bad move)