Buying a home is a major investment, and
like investing in
stocks
or
bonds,
it’s a good idea to examine
how your purchase will affect your overall
portfolio.
If
you have the means to make a very large down payment, you may
be tying up money you could use to make other investments. You’ll
have less debt, but it may be equally important to maintain a
diversified
portfolio.
The other thing to consider is keeping some
of your portfolio more liquid. Real estate can be difficult to
sell quickly if you need cash. And if you're forced to sell your
home, you'll have to find another place to live.
Circumstances beyond your control can affect
the value of your home. Even if you take good care of the property,
a sluggish economy, high interest rates, or changes in your neighborhood
can have a negative impact on the home’s value. The intrusion
of a superhighway, an airport, or some other large construction
project can detract from the home’s appeal to future buyers.
Dwight
P. Robinson, Senior Vice President, Corporate Relations,
Freddie Mac
Dwight P. Robinson explains how real estate is an essential part of the American economy.
Housing in the U.S.
accounts for 22% of the gross domestic product, helping
to keep the economy growing. For example, families spend
about a quarter of their income buying, fixing, furnishing,
and repairing their homes.
If
you have the means to make a very large down payment, you may
be tying up money you could use to make other investments. You’ll
have less debt, but it may be equally important to maintain a
Dwight
P. Robinson, Senior Vice President, Corporate Relations, 