I read an interesting article in yesterday’s Wall Street Journal, written by Karen Blumenthal. It was entitled Deals Abound, But Which Offer Lasting Delight?
It mentioned deals that are out there such as homes, cars and big ticket items. Does getting a good deal make you happier? One psychologist said yes, getting a good deal can be satisfying, but we may buy things we don’t need, or the thrill may wear off and then you ask “why did I buy this?”
The author specifically mentioned buying a home, remodeling a home, buying a car and getting a TV or other big appliance. This is an excerpt from her article:
Buying a Home: Falling home prices can be frightening, discouraging buyers from jumping in and potential sellers from moving on. But they also offer a great opportunity to buy a first house, trade up to a bigger place, or relocate to a more expensive market, since more-expensive homes typically suffer greater price declines than modest homes.
As a longtime Dallas resident, I’ve never made money on a home sale, but twice, I’ve leveraged bad housing markets to trade up to nicer homes. Both times, we got more space than we thought we could afford. The second time, the stiff loss we took on the home sale was outwrighted by a great deal on a foreclosure in a close knit neighborhood with great schools.
Today, many sellers are ready to deal, and interst rates are still reasonable by historical standards, so the next few months should be a great time to buy a home. What’s significant isn’t whether the price goes up right away but whether the move will imrpove your time with family and friends while keeping your budget intact. A home should be a shelter first, not an investment.
To read the full article, click this link to the Wall Street Journal:
