Category Archives: Global Brokers
Glenn Park: Glenn Park has over 25 years of experience in real estate and industry. Prior to joining Global Brokers as the CEO and President, Mr. Park ran Hana International Realty where he accomplished all facets of real estate management, property preservation, sales and marketing. Previously, Mr. Park worked for Amli Realty and Metro Brokers. Mr. Park holds BS degree in Computer Informational System in Business from the Ohio State University and holds CCIM, SRES, BPOR, CDPE, and Five Star designations.
Eric Belsky is Managing Director of the Joint Center of Housing at Harvard University where he did a recent study on homeownership. Here are the five reasons Belsky says to buy a home, each followed by an excerpt from the study:
1.) Housing is typically the one leveraged investment available.
“Few households are interested in borrowing money to buy stocks and bonds and few lenders are willing to lend them the money. As a result, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. Even a hefty 20 percent down payment results in a leverage factor of five so that every percentage point rise in the value of the home is a 5 percent return on their equity. With many buyers putting 10 percent or less down, their leverage factor is 10 or more.”
2.) You’re paying for housing whether you own or rent.
“Homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord.”
3.) Owning is usually a form of “forced savings”.
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”
4.) There are substantial tax benefits to owning.
“Homeowners are able to deduct mortgage interest and property taxes from income…On top of all this, capital gains up to $250,000 are excluded from income for single filers and up to $500,000 for married couples if they sell their homes for a gain.”
5.) Owning is a hedge against inflation.
“Housing costs and rents have tended over most time periods to go up at or higher than the rate of inflation, making owning an attractive proposition.”