Your Home Is Not A Piece of Stock

 I guess none of us should be surprised that the media is beginning 2008 the way they ended 2007…with numerous “insightful” stories about how bad things are in real estate.  But what do I know.  I am just a professional Realtor who works for one of the largest real estate companies in the Riverside/Inland Empire area.  How can I compete with the all-knowing media?  But just for fun, let’s try anyway. When the media is busy telling anyone who will listen that this is a horrible time to purchase a home, they miss a huge point…which is…your home is not a piece of stock, so why are we treating it that way?Understand, I am talking here about your home, not a rental purchased solely for investment purposes.  While I completely understand that when you purchase a home, you want to get the most you can for your money, that is not the only reason for someone to buy a home.  Your home is more than simply an investment.  It is where you raise your children, play your music loudly, grow your own plants, mow your own lawn, and paint the walls any color you want.  No one raises your rent, kicks you out, or decides to sell the property and force you to move.  There is a reason for the saying “Pride of Ownership,” instead of “Pride of Rental.”  Owning a home is a huge part of the American Dream and yet the media would have us all think that this ownership notion should play second fiddle to the idea that your home is solely about making money.

Don’t get me wrong…I am all for making money on the sale of your home.  That is a wonderful secondary benefit to home ownership.  However, I do not believe monetary gain should be the sole determinant of when and why a family should purchase a home.  Somewhere along the line, the public has bought into the notion that your home is first and foremost to be thought of like a piece of stock; to be bought at the lowest price, and sold at the highest price.  Doesn’t matter if that is right for your family. Just buy low and sell high.  But again, that adds to the misconception.  Just look around you right now at all the people who are waiting to buy until the media tells them it’s OK.

Purchasing a home should be thought of as a long term proposition (long term meaning 5 years of more).  Yes, sometimes life forces us into situations that won’t allow us to use all those 5 years, but at least we can start out with that plan.  Once you look at your home with a 5 year window, then you can begin to see the folly of listening to the media.  Want proof?  OK. Then consider this.Is there anyone reading this newsletter who thinks that if they buy a home in 2008, they will regret it financially in 2013?  The answer is probably not.  Put it another way.  Even given our challenging real estate market of today, is there anyone in 2008 who would pass on buying a home at its value in 2003?  Again, probably not. We have incredible real estate prices, and loan interest rates are at historic lows, and the media is telling everyone to wait.  Call me crazy, but I don’t get it.  My point here is that when the media does what it does so well (scare us all into doing nothing), we should analyze what is really happening.  If you fall into their trap, and plan on buying a home today and selling it sometime later this year, then no…you should do exactly as the media says, and stand on the sidelines.  However, if you subscribe to the 5 year plan, and believe your home is much, much more than simply an investment, then now is a great time to purchase…and I haven’t even touched on the massive tax benefits of owning a home.  That’s a whole other newsletter…and a benefit, I might add, you do not get with the stock market.So…as I have said before…We at Westcoe believe very strongly in the American Dream, and take great pride in helping you achieve it.  Rest assured, no matter how loud the media cries wolf, we will be there with an alternative message.  In the meantime, go paint your walls, and turn your music up…just because you can.