Real Estate: Home ownership or still renting?

Many experts will tell you that the real money is in real estate. That has certainly been true for many of our countries millionaires. Making money in real estate starts with your own home and then trickles down to investment properties and possibly commercial properties as well.

The question everyone always asks is: When can I afford a home? There are a lot of answers to that question. One important thing to understand about home ownership is that the government wants you in a home and offers incentives to get you into your first home. Most states offer First Time Homebuyers programs. These are typically designed to help you with your downpayment. Instead of the customary 10-20% you can often find ways of paying only 3% or less for your first home. That doesn't mean that getting into a home is easy. There are still closing costs, finding a good mortgage lender, real estate agent, and property that you feel comfortable with.

Why should you own a home?

If you are into your career, have decent money management habits, not too much debt, and a stable career outlook you should be thinking about home ownership.

Why shouldn't you be in a home?

There are a number of reasons why you wouldn't want to be in a home. If you are not planning on staying in the area for at least a couple of years, have an unstable job situation, or significant debt maybe putting off home ownership for a few years would be your best option.

Real Estate Investing

After you are in a financial situation that you are comfortable with you should think about the possibility of real estate investing. You can do this in a number of different ways: you can purchase rental properties, (homes, duplexes, apartment complexes, townhomes, commercial and industrial propoerties, land), purchase REIT mutual fund shares, help others into homes, etc.