Before the economic collapse a few years ago everyone was clamoring to buy houses. Why wouldn’t they if housing prices ALWAYS rise? It is very important to take a broad look at the news that is written over the coarse of a week or so. Doing so gives a great picture as to the general market conditions and what is going on.

At the bubble top you will notice many or most articles raving about the large gains or fortunes being made in the areas in question. There will likely be TV shows about the subject showing how seemingly regular people make fortunes off of it.

The media will be so saturated with this type of hype that most of the country would agree that the particular area is a good investment. The problem is that when everyone thinks the investment is good it means that there is likely little room left for growth and a ton of room to crash.

At the end of the bubble crash, there is a drawn out period of despair which can be easily identified. When you look at every newspaper and there are headlines about how terrible things are, it could actually be a good sign, one of opportunity.

Just like how when everyone knows that something is good, there is no more room for growth. Well, at the bottom of a market crash there is ONLY room for growth. Right now we are in a period where the despair is dying down, but people are still either too scarred or too poor to do anything. Many people want to buy but cant because they cant afford it.

Recently i have seen many articles that argue against home ownership. They say that renting is superior but i could not disagree more. They argue that you pay a little bit less every month and that it also means that you don’t have to worry about taking care of the home. If there is a problem or if something breaks, just call the land lord.

When you own your home you will likely end up spending more money every month to start. After few years or so your monthly expense as a home owner will likely be less than the monthly expense of those renting a place with a similar amount of space.

After time, the equity that you have built up in your house will give you financial agility, should you ever need it. Had you been renting, the increase in rent every time you renew your lease will have made you less financially agile.

You will be rewarded if you own your home and take care of it. Over time, owning your home will become relatively cheaper because you just pay roughly the same amount each month with little increase.

This all means that in 20 years time you will be paying significantly less a month than someone renting AND you will have built up equity in your home. Even better, if you were able to fully pay off your home loan, you will pay only property taxes.

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