One of the basic tools used by financial advisors is to show their clients the advantages of homeownership versus renting. As you’ve probably heard, renting always seems to come out as the bad option. Many are starting to question whether that is still the case.

Regardless of where you turn these days the news regarding the real estate market is bad. Prices are falling. Lenders are not lending money. Foreclosures are going up. The Federal Reserve is going to raise rates. As I write this, the federal government is announcing that there will be no bailout of Fannie Mae. While that is good news, the fact that the financial viability of Fannie Mae is even being questioned is very scary.

Given all of the negative signs in the real estate market, we need to return to the fundamental question of whether buying a home now is a good move. There are many caveats that go into the answer, but we are going to ignore them. We are going to assume you are moving into a solid neighborhood, the home is in decent shape and the price is within a reasonable range of its appreciated value.

So, should you buy? The answer is yes! Not only that, there hasn’t been a better time to buy in the last 8 years. With the real estate market going down, you’re probably wondering how I could be taking this positions. Well, think it through.

People will always need a place to live. They needed homes 80 years ago. They will need them in 80 years. Unlike the stock of a company that can go up or down or even become utterly worthless, a home has an inherent value because it is real property. This means that sooner or later, the market will turn around. When it does, you want to be a homeowner so you can reap the benefits of the rebound.

Home values are falling. Practically every bit of news related to the real estate market is negative. Simply put, it can’t get much worse than now. That means it is time to buy. If we are not at “rock bottom”, we are mighty close. You might see the home you buy lose a bit more value through 2008 and even 2009, but what do you think it will be worth in 2011? A lot more than you buy it for if you act now.

The real estate market will rebound. In fact, it is going to rebound strongly and a lot of people are going to make some serious money. We are at or near the bottom. There is no better time to buy and reap the benefits when things turn around. In comparison to renting, well, there is no comparison.

Raynor James writes about issues faced by FSBO sellers for FSBOAmerica.org where you can list your property for sale by owner for free for 1 month.

Every state has departments that are responsible for the planning and funding of affordable housing projects. Alabama’s is called the Alabama Housing Finance Authority or AHFA. In statements released late last year, the AHFA announced that its Board of Directors has approved both its HOME Action Plan and Low-Income Housing Tax Credit State Qualified Action Plan. These are two of the primary tools used by the AHFA to promote low-income housing development.

The HOME Action Plan defines several AHFA housing priorities for 2011, which will be used to determine how HOME funds are distributed. Those priorities include: adding to existing low-income housing stock, funding projects that could not otherwise include affordable units without HOME funds, and ensuring that HOME funds are evenly distributed throughout the state.

Over $16.5 million has been allocated for HOME funds for the 2011 fiscal year. Of that, about $2.5 million is designated for Community Housing Development Organizations (CHDOs), which are the primary drivers for low-income housing creation.

Alabama’s LIHTC Plan lists the same priorities as its HOME Action Plan, focusing on increased affordable housing stock and an even distribution of tax credits across the state. The LIHTC Action Plan includes credit ceilings, requirements for the application process, and required progress once tax credits have been reserved.

Though the AHFA Board of Directors has approved both plans, they are not finalized. The HOME Action Plan still has to be approved by the U.S. Department of Housing and Urban Development. The LIHTC plan requires approval by Alabama’s Governor. As a result, both plans are still subject to change. Current versions of both the HOME and the LIHTC plans are available online. They are great examples of the tools states use to ensure that proper attention and funding is given to affordable housing projects.

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