According to Warren Buffet, one of the wealthiest and most successful investors in the world, it is. He is quoted as saying “The third best investment I’ve ever made was the purchase of my home", which was second only to purchasing wedding rings. He recently presented his annual letter to company shareholders and stated his belief that, "Home ownership makes sense for most Americans, particularly at today’s lower prices and bargain interest rates”.
He gives the following tips to prospective home buyers:
- Stay within your budget. Don’t expect to grow into a house payment. The future is unpredicatable and your monthly payment should fit well within your current budget.
- Purchase when the market is down. Now is the perfect time to buy a home, as prices are lower than ever. Any type of market is impossible to predict, so don’t wait to take advantage of it when it's at the bottom.
- Fixed mortgages only. Variable rates were popular with home buyers that wanted more house than they could afford. They banked on their home gaining value quickly, then refinancing into a lower payment before the rates changed. But the housing market turned downward, and values decreased. As rates increased, homeowners could no longer afford their payments.
- Long term hold. Statistics show that over time real estate values increase. Plan on owning your home for at least 10 years to realize a return on your investment. Warren Buffet still lives in the 5 bedroom Nebraska home he purchased 52 years ago for $31,500.
The spring market has begun and there are many great deals out there. Are you thinking of investing in Ann Arbor real estate? Now is the time! Whether you’re buying or selling a home, the Bouma Group can answer any questions you may have, so contact us today at 734-761-3060 or firstname.lastname@example.org. Ann Arbor condos are more affordable than ever and a great place to start with property investment. Visit the Ann Arbor Condo Hotline, a terrific resource for active and sold condominium information.