The economy is bad, the housing economy is worse and many people think that this means that it's a really bad time to buy a home. There are certainly drawbacks to buying a home now. One is that it may be hard to qualify for a mortgage with good terms. Another is that there is no telling what's going to happen with the housing market in the next few years so you might not be able to turn a profit on selling the home. However, this doesn't actually mean that it's a bad idea to buy a home; in fact, some would argue that it's always a better idea to own than rent.
Owning a home gives you a number of benefits in comparison to renting. The most important one is that you gain an asset which allows you access money in the future. The reverse mortgage market is one reason why it may make sense to buy a home now despite changing home markets.
In planning for retirement, you may come to realize that the current state of the economy is making you unsure about your ability to afford life as an aging adult. Owning a home gives you the option of selling the home at the time of retirement or accessing an income from the home through the reverse mortgage. That's not going to be an option if you spent your whole life renting.
Question of the Day: Is the availability of a reverse mortgage loan a good reason to buy a house now?
