“Some people shouldn’t own homes.”
Lately, I have been inundated with news about the end of the American dream; that home ownership isn’t necessarily a good thing, and that it may actually be hurting our economy and our neighborhoods.
I agree that not everyone should own a home. Home ownership requires commitment and responsibility, and frankly, there are people who shouldn’t own their own home. It’s not about where you are financially, there are many programs available that cover the down payment costs. It’s where you are on the reliability scale that determines whether home ownership is a good choice for you. Renting may be an option, but studies show that owning a home is the surest way to accumulate net worth. It forces people to build wealth by saving their money every month in a giant house shaped piggy bank. According to Trulia.com, it is cheaper to buy than rent in 72% of America’s largest cities. Another recent study by the National Association of Realtors, shows that families who own homes have a median net worth of more than $200,000, while renters have approximately $5,000.
A few facts from that study:
|% of those who vote often in local elections||78||58|
|% very or extremely satisfied with their quality of life||56||36|
|% who often or always volunteer for charitable organizations||25||15|
This study also showed that children of families who own homes have less teenage pregnancy rates, higher SAT scores, and later in life, they have more income, more stability, and less dependence upon welfare. Apparently, one of the smartest things you can do for your children is buy a house.
Additionally, every home sold creates a flurry of economic activity and jobs, with much of that pouring into small businesses. As an industry, the housing market is an economic behemoth. If financial stability and small business is the cornerstone of American society, then home ownership matters. Buying a home creates stable neighborhoods, leverages wealth, and promotes well being. Renting a home will never give you all the benefits that home ownership can. Protect your future, buy a home! Call me for more information today!