Mark Zandi with Moody’s Analytics, says the same fundamentals are still true: If you can afford it, there are a lot of advantages to homeownership. With a fixed interest rate, your home payment never goes up. But your rent will climb in most places. And even if prices don’t rise that much — if you pay down the mortgage every month, and you don’t take out a big home-equity loan — there’s an automatic savings for the future built into owning.

“This is why homeownership has been such an important part of the American Dream, because people have used it as a way to save. And it’s been a relatively safe way to save,” Zandi says. “Now of course, as we know as we have seen, there are ups and downs. But in general it’s been a pretty good investment.”
Everybody is very nervous and reticent to dive back in, but it’s the people who do that benefit in the long run.

Buy Now To ‘Benefit In The Long Run

Zandi says the housing crash hasn’t changed the nature of homeownership.

“The other thing to consider is that like any asset — after a crash, after prices have fallen very quickly — everybody is very nervous and reticent to dive back in, but it’s the people who do that who benefit in the long run,” he says.

Zandi has been tracking home prices as they’ve fallen in cities and neighborhoods across the country. And he’s asking this question: Does it make sense for people to buy a home right now?

“I think the arithmetic is such that if you plan to live in your home five or more years, then you should really consider buying a single-family home in most parts of the country at this point in time,” he says. “Prices have fallen so far, that single-family housing now is very, very attractive; very affordable [...] and it’s now even attractive relative to renting.”

Cost Of Owning Has Sunk

While it’s been getting cheaper to own a home, it’s actually been getting more expensive to rent a place to live.
Gleb Nechayev is a housing economist with CBRE Econometric Advisors, a real estate research firm in Boston. Nechayev has a chart that shows the cost of owning a house compared to renting. Back in 2006, the cost-of-owning line on the chart was reaching its peak, but now the line has plunged down — like the cliff of a mountain.

The Buy vs. Rent Ratio Over Time

These days, the monthly cost of renting or buying a home is about the same. That one-to-one ratio is the lowest in 25 years. That’s down from 2006, just before the housing market crashed, when the cost of owning was 46 percent higher than renting.

Source: Gleb Nechayev/CBRE Econometric Advisors

“We are at the very bottom of that mountain right now and we have never seen that ratio so low,” Nechayev says.
Nechayev’s data goes back to 1986. And he says since then, it’s never been this cheap to own a house as compared to the cost of renting. Of course, these are national averages and there are some big differences depending on the city and neighborhood and type of home.
But overall, it’s gotten so cheap that Nechayev is puzzled why more people aren’t buying.

“The fact that we haven’t seen people jumping at this opportunity does suggest that we might be witnessing some kind of changing perception of homeownership,” he says.

Nechayev says younger would-be homebuyers may be deciding to live in cities, where it can still be harder to find and afford a nice home or condo in a good neighborhood.

And he says job mobility is a big issue for many people in the still shaky economy. If they have to move to take a new job, it’s a lot easier to do as a renter.

Although the real estate market has experienced its share of difficulties and struggles over the past, three years, it is still important to realize that owning a Dominion property still continues to be a smart investment.

Here are the top reasons why buying a home is still a great investment:

1. You pay less income tax – Because your home payments go directly to your lender for your mortgage (instead of to your landlord for rent payments), you can save thousands of dollars in income tax each year. This is because homeowners can deduct the interest of their mortgage payments, as well as their property taxes, when they file their federal income tax return each year. In addition to a single-family home, consider that purchasing a condo or even a mobile home affords you the same tax breaks each year.
2. Your investment will increase in value over time – Although the housing bubble across the country burst (and in a big way) a few years ago, history shows that, over time, homes increase steadily in value, making them an excellent investment. Keep in mind, however, that the ultimate determination of your home’s ability to increase in value is the location of the home, so do your homework and pay attention to property values.
3. The money you make on your investment is tax-free – Now, what other investment can offer you that? Consider you bought a home ten years ago for $200,000 and you sold it last week for $300,000; you just cleared $100,000, tax free! Federal law states that homeowners can make up to a $250,000 profit on their home, tax-free (couples who file jointly can make up to a $500,000 profit).
4. Your home loan payment for your Dominion property is something that will never increase – Provided you have taken out a fixed home loan, you can expect your home payment to be the same in 30 years as it is today. This allows homeowners to be able to budget their household, both now and in the future. Consider rent payments, on the other hand: You certainly cannot depend on them staying the same!

The Dominion is the address of many of San Antonio’s celebrities and top executives. This premier, master-planned community is comfortably situated in the beautiful Texas Hill Country, and the real estate here is simply spectacular. In short, Dominion luxury home options are quite easy to find here.
If you are looking to build you dream home in the Dominion, there are a number of the Dominion luxury home options because of the premier builders who build here.

• Kyle Lindsey Custom Homes – Kyle Lindsey Custom Homes is a homebuilder who has been in the business for 14 years. Kyle Lindsey is the President and CEO of Kyle Lindsey Custom Homes. This homebuilder has won three Summit awards, and Kyle serves at the President of the Custom Builder’s Council for the Greater San Antonio Builder’s Association. In addition, he is also involved with the Texas Association of Builders and the National Association of Builders. He is also on the Mayor’s Sustainability Task Force and the Technical Advisory Committee for Build San Antonio Green.

“When customers give me the opportunity to build their home, I let them know up front that they are dealing with the CEO and project manager. When they choose Kyle Lindsey Custom Homes, they get Kyle Lindsey,” says Kyle.
In addition to the Dominion, Kyle Lindsey Custom Homes builds homes in Cibolo Canyons, Cordillera Ranch, Highland Ranch, Sendero Ranch, Champion Ridge, Sonterra Ranch and Terrell Hills, just to name a few.

• Burdick Custom Homes – Burdick Custom Homes has been a leading homebuilder in San Antonio for more than two decades. Burdick Custom Homes have received numerous accolades over the years, including five awards at the 2004 Parade of Homes at Renaissance Court at the Dominion. The awards given to Burdick Custom Homes include: the President’s Award, the People’s Choice Award and the Realtor’s Choice Award.

In addition to building in the Dominion, Burdick Custom Homes builds in Anaqua Springs, Champions Ridge, Cordillera Ranch, the Pinnacle and Waterford Heights.

• Prestige Homes –Prestige Homes is the oldest locally owned and operated home builder in San Antonio and has been building homes since 1959. Other communities Prestige Homes builds in include: The Elms, French Creek, the Renaissance and Ridge Creek.