5 Reasons to Buy a Home in This Market

Should You Buy a Home?

It’s argued that buying a home is one of the best investments that one can make. Sure, that school of thought may have been popular when it was believed that homes were one of the only assets guaranteed to go up in value year-after-year, but is that still the case?

While buying a home may not be right for everybody, especially if you have large amounts of personal debt or an unstable income, there are still plenty of reasons to buy a home in this market.

5 Reasons Why You Should Buy a Home


Certainly there are a few ares in the country where this isn’t the case, but for a large majority of the United States, home values remain at levels that haven’t been seen in the last decade.

While some non-duressed homes are selling for bargain prices, there are gobs of short sells and foreclosures that you can buy at great prices!

If you’re looking to buy your first house, a foreclosure or short sale may present you with the opportunity to find a bargain and immediately start with 20% equity position!


Another one of the reasons to buy a home is the enticing 3-4% interest rates being offered.

As our economy continues it’s recovery process, the Fed has promised to keep rates low and we’ve even seen them drop from once all-time lows over the last 3-4 months. As of right now you can get rates of 3% on a 15-year fixed loan and even 3.7% on a 30-year mortgage when you buy a home!

While young adults may not realize just how great an offer these low interest rates represent, more seasoned adults still hold vivid memories of the 15-20% interest rates that were common back in the early-to-mid 80s.

With the combination of low interest rates and duressed properties, there are really no better reasons to buy a home if you’ve yet to do so.


While this isn’t one of the main reasons to consider when buying a home, it certainly should be a minor factor.

Whether you realize it or not, when you pay rent on a home, condo, apartment, or duplex, a part of that rent payment goes to paying the property taxes and PMI (private mortgage insurance) for your landlord.

If you were to buy a home then you’re allowed to deduct these payments each year when you file taxes, thus saving a few hundred dollars on your tax bill! This of course assumes you can claim more than the standard deduction and itemize your taxes.


Most people that rent can’t get past the idea that they’re throwing away money each month when they mail off that rent check.

While there are reasons that make renting viable for many people, and in some cases a necessity, the truth is that you are throwing some money away. One of the benefits when you buy a home is that every payment you send to the mortgage company includes a payment to principle which helps pay down the balance of your loan.

The lower your mortgage balance gets, the more equity you build in your house (assuming the value of the home stays the same or increases).

With the low housing prices and interest rates, it’s often cheaper to buy a house than it is to rent a place! Despite this being true, a lot of people that rent forget to include all of the additional (sometimes hidden) costs that pop up when you buy a home:

  • Increased maintenance costs – landscaping, minor and major repairs (faucets, lighting fixtures, heater and A/C units, roofs, fences, etc.)
  • Taxes, PMI, and Home Owner’s Insurance – while I mentioned that you can deduct some of these expenses on your taxes, many renters forget to include these additional expenses when looking at homes and their expected mortgage payments.

    If you’re looking for a reason to buy a home, and are in the market to purchase one, please don’t forget to factor in these additional costs as they may be the deciding factor in a good investment and one that leaves you house poor.

  • Home Onwer’s Association Dues


There was a period of 6 consecutive years that I signed a 1-year lease and moved to another place after the year was up.

Packing up boxes, loading possessions in moving vans, and finding new places to live is something I don’t look back upon with fond memories.

While I’ve listed a few financial reasons to buy a home, this reason to buy is all about the emotional aspect of home ownership and is something that can’t be ignored. I love knowing that this is “my home” (although it’s really the bank’s); I love knowing that I don’t have to move every year and hunt for a new place to live.

Owning a home does bring some peace of mind and comfort. Instead of feeling like a squatter, it gives you a sense of pride and there isn’t a much better feeling when you walk into the door and know you’re “home.”

While there are many reasons one should rent, these 5 reasons to buy a home are hard to ignore when you take into account the benefits they have on your financial future.

About the Author

By , on Jul 16, 2012
Andy Tenton
Andy is a 30-something New Yorker who turned his financial life around. He took charge of his finances, got out of debt, and is now working his way toward financial success. He is the publisher of WorkSaveLive.com.

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  1. mira says:

    I really agree that prices right now are low and you can live in it or rent it when the prices go up.

  2. To me, it’s such a no brainer! Alas, I don’t want even more property and happy with my diversification.

    I want to spend all my time working an online business instead. Although, I am tempted to buy more property!


  3. I think one of my favorite reasons to buy a house (aside from freedom and privacy) is no annual apartment rent increases. I am so sick of these. I know that there can be some factors to increase your monthly payments with owning a home, but it doesn’t sound as common as rent increases.

  4. I agree that this is a great time to buy a home. Rates are at record lows and prices are low almost everywhere in the country. I recently posted an infographic that represented this.

  5. Shilpan says:

    I can’t agree with my more, Andy. You can’t go wrong, if you are prudent in buying a home with nice equity to begin with. Our tax code is very biased towards real property ownership. Now is the best time to buy. This may be one in a lifetime kind of opportunity.

    • Andy says:

      I wonder if they’ll ever get rid of the property tax deduction…or mortgage interest deduction. That will certainly sour some things and make buying a home not nearly as attractive.

      • Shilpan says:

        The best thing that can happen during our life time is to see IRS gone, and also fair tax at the state level enacted so that there is no property tax. Actual tax payment is much more than the tax deduction. Do you agree?

  6. AverageJoe says:

    Interest rates are my favorite reason, although a Harvard study showed that nearly 1/3 of all people who currently own a home would still be better off renting.

    • Andy says:

      That doesn’t surprise me. There are a lot of people out there that can’t afford half of what they own.

  7. This is probably more true in the US rather than in Canada. Your list of reasons totally makes sense, especially in the US for anyone buying to live in his/her house for the next 10 years. The downside is extremely limited!

  8. I keep reading that the housing prices are great in the States. That sadly has not transferred over to Canadian housing prices. That being said, a lot of ppl (cdn’s) are buying property down south.

    • Andy says:

      That’s smart! I don’t think you have to be bound by national or state boarders to go take advantage of housing prices. If I had the money, and I wanted a vacation home in another country (and the housing market was struggling), then I’d be all over it!

  9. I think owning a home is great, as long as you can afford it. The one area that I think most people forget about is budgeting for expenses like maintenance. That is the toughest part of homeownership.

  10. Andy Hough says:

    It does seem to be a great time to buy a home. A couple of things that are currently holding me back are the fact that I don’t think I want to live in my current location much longer and I don’t have a stable income. Once those things are taken care of I might buy a home.

    • Andy says:

      Being a pro bono lawyer is a little scary. I don’t really have stable income either and I know how scary that can be. Regardless of all of the great reasons to buy a home now, it’s probably wise that you don’t (until things settle down).

  11. Home ownership is certainly a great thing. I think interest rates will be staying at current levels until at least 2014 and thats just based off what Bernanke has talked about.

    We own our condo in Chicago and rent here in Denver and I am itching to buy again. I just want to sell our Chicago home first. Its a break even property and not a investment property.

  12. Adam Hathaway says:

    I feel that #5 is actually the most important one no matter what the other 4 are looking like. If you plan on living in your house until you are forced out or pass away than the best time to buy one is when you can. This topic can have nothing to do with your finances, and everything to do with it all at once. Nice summary Andy.

    • Andy says:

      I think the emotional aspect is a good reason to buy a home but I think it is more financial than anything else. Far too many people get in trouble financially because they don’t have their emotions in check. While I agree that part of buying a home involves emotions, if you can focus on the other 4 points more then you’re more apt to make a better decision.

  13. I moved 12 times in 10 years, and I do not miss renting one bit. We prioritized buying a home over everything else, and got ourselves in when we thought it was the “bottom” in 2010. Unfortunately, the prices kept slipping. But we look at it this way; We plan on being there for another 7 years, and our money is building equity (some of it), plus we don’t miss renting one bit. It’s more expensive for us, but well worth it.

    I only wish the prices and rates were as good as they are now when we bought. But I don’t think we’ll be underwater when we sell, and hopefully biulding some nice equity.

    But I still get bummed knowing we could have saved 50-70k on our house by waiting. (though, we’d have missed out on this home, and would have had to buy another).

    • Andy says:

      You still got a good deal. Timing the housing market is like trying to time the stock market…you can’t do it perfectly. At least you got in after 2008; that’s what really matters!

      I thought my 6 moves in 6 years was bad. 12 in 10 is TERRIBLE! It’s wonderful to know that I don’t have to haul everything around and hunt for places to live. What was always unfortunate for me was that I’m a fairly big dude so ALL of my friends would ask me to help them move their big furniture. I’d move 4-5 people in the span of a week…it was awful.

  14. Eddie says:

    I don’t know what parts of the country you guys are in, but where I am homes are anything but cheap. They are selling like hotcakes, and typically within 1-2 weeks. You do raise a lot of great points Andy, and #4 being my favorite, it’s like forced savings. 🙂

    • Andy says:

      The forced savings/equity aspect is absolutely one of the best reasons to buy a house. We live in the Midwest and houses are cheap. It’s one of the benefits when you live in the flyover states. 🙂

  15. Good points Andy. On Number 4, does anyone else find it sad that we question whether or not we’ll have some equity build up? Wasn’t this always the number one argument for owning a home (outside of just having a place to live)? Stupid recession ….

    • Andy says:

      I don’t think housing prices going up should be guaranteed (by the government or something), but it is unfortunate the housing bubble was caused by some greedy people and ignorant consumers.

  16. I am DYING to own a home for all the reasons above. The only problem is in order to do it I’d have to wipe out my savings and I’m not sure it’s worth it. I’m worried if I wait another year or two to build up the fund even more–the low interest rates/buyer’s market mentality may be gone!

    • Andy says:

      I’m not sure it will be completely gone but that’s certainly part of the risk of waiting. If you had to completely wipe out all savings (including emergency fund) then I wouldn’t do it.

  17. For me the question of rent vs. buy is as much about personal preference as finances. What I like about renting is the absence of responsibility. If anything goes wrong, all I need to do is make a phone call and (hopefully) the landlord takes care of it, and on his or her dime. And if I want to relocate, I’m not constrained by a need to sell my home. On the other hand, ownership gives us the freedom to renovate, decorate, garden, and basically run our own little kingdom, which is fun and rewarding. I rented until about age 34, and have owned since. I think at some point we may capture what ever capital gain we’ve accumulated on our house and go back to renting to get back to less responsibility/more freedom.

    • Andy says:

      Thanks for sharing your thoughts, Kurt! For me, paying for a few repairs doesn’t outweigh the benefits of building equity and eventually having a paid-for home…but I can understand where you’re coming from. I think the idea of eventually having no rent/mortgage payment is one of the most enticing reasons to buy a home.

  18. Daisy says:

    I really, really want to buy a house. The market is great right now. Even in Vancouver (if there ever was such a thing here). It’s becoming more of a buyers market, for sure.

    • Andy says:

      I’d love to live in a nicer city, but I really like the low house prices in the midwest. There isn’t as much to do here but the cost of living is so reasonable!

  19. I know that this is probably the lowest interest rate environment I will likely see for decades. That combined with the low prices makes it cheaper than renting where I am living. It was a no brainer for me but everyone must look at their situation to see if it works for them.

    • Andy says:

      Certainly nobody should buy a house solely because of all of these great reasons…it absolutely must work for each individual person and fit into their budget.

      • Joe Morgan says:


        Especially if you are not sure if you’re going to stay in the house for at least 7 years. It’s a great time for people who would be buying anyway, but people probably shouldn’t buy just because it’s a great time to buy. The need for a house still has to be there and make sense…

  20. Michelle says:

    These are definitely all great reasons. Houses are just so cheap right now that it’s hard to say no.

    • Andy says:

      I agree, the low prices are one of the best reasons to buy a home now. I want to buy a few rental properties but I just don’t have enough disposable income to feel comfortable to do so.

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