Seriously, this "Smart Money" magazine article reads like it was written by the NAR and The Corrupt David Lereah. I wonder if the writer, Colleen DeBaise, and her rolodex of "experts", or Smart Money itself, was paid by the NAR. Or maybe she's a Desperate Homedebtor looking to get out from under her debt trap by pumping the market. Whatever the case, something is not right in Denmark.
April 14, 2007
Written in the Faux News "Fair and Balanced" approach and being neither, this article really shouts out to me "renters are stupid fools, and now is a great time to buy!"
You can email the "reporter" at email@example.com, and email Smart Money for being so stupid in publishing the exact wrong advice at the exact wrong time. Man, Smart Money is now from here on out an untrustworthy rag in my book. Here's the low-lights:
Embracing Real Estate
EXCUSE #1: "Everyone is way too insane about real estate." Count this as the "protest" renter — the person who perpetually rents, who thinks they're too cool for school and doesn't want to be one of those people who talks about renovation projects at a cocktail party. (The true "protest" renter also protests cocktail parties.) These people might also fear growing up, becoming their parents, owning guest towels, etc.
Counter: Well, owning your own home IS a responsibility — and if you're not ready for it, then don't do it. Of course, you'll miss out on nice tax breaks for mortgage interest and property taxes, which make owning a compelling proposition for many. Not to mention, you're not exactly building equity when you split the rent with the roomies
EXCUSE #2: "Renting is a good deal." Truth be told, there is some logic to that. After all, if something breaks in your rental apartment, you just call your landlord. You don't spend money on pricey renovations. Heck, you don't have to pay property taxes. And if you've got enough money for a down payment, why dump that cash into an expensive home, when you could use it to buy something like stocks instead?
Counter: Many people consider their home an investment. That means even if your home doesn't appreciate as much as your favorite stock or exchange-trade fund, you still gain because it doubles (hopefully) as a nice place to live.
EXCUSE #3: "Buy a house on my own? Then I'll really never get married. What do I do next — buy a cat?"
Counter: Tsk, tsk, says Francis, who hosts "Savvy Ladies" seminars to counsel women on personal-finance decisions. She's heard this excuse hundreds of times from female clients. "I call it the 'Prince Charming' syndrome," she says. "They put their life on hold until they find that Prince Charming.
EXCUSE #4: "I'm afraid of commitment."
Counter: Most experts recommend that you stay in your house at least three to five years, to recoup costs associated with closing and to see an increase in the home's value.
EXCUSE #5: "I'm worried about disaster striking." But should it stop you from buying a home?
Counter: Nope. Historically speaking, property values bounce back, especially if the disaster happens in a desirable area