The value of owning a house . . .

These days, the house and condominium rental market in Middle TN is “on fire.”

I’m amazed daily when I see the number of people choosing to rent (and how much they are willing pay) instead of doing what it takes to BUY their very own place.

My view is that while we’re all here now (on this earth) living in a country in which real property ownership is relatively easy to have at reasonable cost . . . why WOULDN’T everyone take advantage of these perks?

• Is it “Fear of Commitment?”
• Don’t want to get too tied down . . . Locked into living in the same neighborhood or city long term?
• Is it financial ignorance (Note: I am not saying “stupidity” – This is not an insult :-)) . . . perhaps a misunderstanding about the money side of things with respect to owning a house?
• Perhaps, the stop is as simple as not knowing HOW to buy a house . . . Arranging financing and managing the process of finding the right place and actually buying it.
• Does this house ownership reluctance tie to some latent craving to avoid “being a responsible adult?” After all . . . once you own the house, there’s the continual responsibility that goes with it of maintaining it.
• Is it that due to circumstances beyond control (Natural Disaster, National Economic Drama, or personal drama) that folks have found themselves financially “upside down” and climbing out of bankruptcy or foreclosure? Is the embarrassment such that these folks have decided to quit and forego their opportunity to own a house?

Let’s flip the coin . . .

Beginning with those folks who are just on the other side of (or in the middle of) a financial train wreck . . . Hitting bottom is a PERFECT opportunity to rebuild.

What did Nashville do after the great flood in May of 2010?

We rebuilt!

Working towards buying a house and staying at it until the deed is done is probably the fastest track I can imagine to finacial security. Lending guidelines are more strict than they have been in years, and we are still seeing folks who endured foreclosure or bankruptcy just a few years back able to buy houses NOW.

Bad stuff happens to good people . . . and those good people have 2 choices . . . 

QUIT!

or

REBUILD IT better than before!

This CAN be done and IS being done by lots of smart folks every day . . .

BECAUSE . . .

They understand the value of owning a house.

• In order to buy a house, you’ve gotta clean up your credit – GOOD!
• Interest rates are still at historic LOWS – GOOD! (But you might get moving sooner than later because the Fed Government is doing stuff that’s going to trigger inflation).
• Mortgage Interest Deduction is still here – The largest portion of your house payment each month becomes a TAX DEDUCTION – GOOD!
• Stability – You can actually get to know your neighbors and be a part of something bigger than yourself – your community – GOOD! 
• Appreciation – Assuming your commitment to the house you buy is a long term commitment . . . buy NOW (anywhere in the USA), and I am VERY confident your house will increase in value over time . . . perhaps as much as an average of 3% per year of ownership. Let that equity build (don’t borrow against it), and it can become a nice retirement fund for ya. – GOOD!
• Another member of the family – Your house a thing to love and nurture . . . You can do whatever you want to do (within legal parameters) to make it yours . . . Every month could be a new project as you “grow up” with your house . . . It’s your HUB! – GOOD!
• Investment – If you ever decide to move to a different house, keep the one you’re moving from and rent it to someone who hasn’t read this email . . . Enjoy the benefits of tax deductions and rental income for years . . . and always rest easy in the comfort of knowing that when it’s time for you to “move back home” . . . you can 🙂 – GOOD!
• When you buy a house, you’re doing your part in bolstering the economy – More people buying houses creates jobs as more houses need to be built (or renovated) . . . When you own a house, you are paying taxes which help your local municipality maintain the infrastructure and schools and services. – GOOD!

SO . . .

I am a REAL believer in the value of owning a house . . . It just makes sense!

When you’re ready to give it a whirl, the process is MUCH more SIMPLE than you can imagine.

Here’s your 2 step formula for buying a house:

1. Find a GREAT REALTOR in your community! The best way to do this is to ask friends, family, and work associates who own homes: “Who is the BEST REALTOR in town?”
2. Find a GREAT MORTGAGE LENDER! The best way to do this is to ask your REALTOR and friends, family, and work associates who own homes: “Who is the BEST Mortgage Lender in town?” This needs to be a person who will work with you throughout the process even if it includes several months of “Credit Counseling” . . . Someone who can help you create a sensible budget and coach you through cleaning up any credit messes you may have.

Don’t do this alone . . . Begin with finding these 2 critical people (REALTOR and LENDER).

If you’re in Middle TN, contact Pareto Realty . . . We are quintessentially poised and ready to lead you through this process.

Just sayin’

Best,

b