Sell Everything and Rent!?!

Filed under: Mortage Industry News

If you know me at all, you know how I don’t agree with the title of today’s video. I’ve talked about this topic before, but wanted to bring it up again because there have been several recent news articles that discussed this idea.

Stories in the News

One of the stories was on CNBC by a contributing writer, Diana Olick, and she talked about how it is a terrible time to buy, so potential homeowners should be renting instead. She even went as far as to suggest that you should sell what you have to move to a rental.

The second place I ran across this information was on MBS Highway with a vlog that talked about the same topic. Barry Habib is not a fan of Diana Olick, so he offers an argument against the statements that were made in the CNBC story.

Real Estate is Meant to be a Long-Term Investment

Sometimes I feel like a broken record saying this so much, but it is important to remember that real estate is meant to be a long-term investment. It really starts to be beneficial when you can pay off the mortgage so that the property can take care of you in retirement. If you can do that with two or three houses, then you are set for your golden years.

There are instances where it makes sense to buy high and sell low, but we are talking about your home, not the stock market. This concept doesn’t account for the leverage that you have for the future when paying for a real estate investment. The real power of the mortgage is found in the ability to pay it off in the future; it’s not about the value of the property. Of course, there are other situations that can be considered on a case-by-case basis, such as a family who needs to move around a lot for work. But, in most situations, the best bet is to buy and hold onto the property for a long time so that you can reap the benefits in the future.

Hang On To Your Investments

I feel strongly that it is not the time to sell your real estate “just because.” The best thing that you can do is look at the long-term value of paying off your home. If you have questions, then you are always welcome to contact me at Franklin Loan Center. Also, I invite you to comment or share your thoughts, whether they are the same or different, so that we can start a good discussion about this topic.

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