Fortunately, the pendulum has swung back. Since 1991, overall housing prices have remained stable, though in some areas of the country they have fallen by as much as 25 to 30 percent, and mortgage interest rates have dropped dramatically. But if like many young people, you grew up in an overheated housing market, you may continue to think of home ownership as something beyond your reach. Here s why that attitude could be a big mistake. You may wait a long time to see rates this good again.
Home ownership is one of the last remaining tax shelters.
If he rents, he ll get no tax break whatsoever. You need to start small to trade up. You may feel that there will be plenty of time to get into the housing market when you feel financially secure. Your future is going to be expensive . Financial experts generally suggest that to retire, you ll need to build up enough in savings and investments to generate yearly income of 70 percent of your pre-retirement income.