We’ve all been told that to truly live the American dream, you must own a home, preferably with a white picket fence. What does this mean and is this phenomenon really true? What if you are content just renting an apartment or house? We are going to give a brief insight on why buying a home has become the status that it has and if renting is really worse than buying.
Home Owning: A History
We still lump home owning into the example of “living the American Dream”, even though the phrase was coined in the 30s. It’s it has been seen as a symbol of independence and financial success for a long time. Back in the 30s, it was more likely that a homeowner would be a farmer who owned their own land. This was due to the early mortgage structure (or lack thereof) and the Great Depression.
The Industrial Revolution plus the formation of a lot of housing institutions changed the home owning front for a lot of hardworking Americans. From the 1950s and on, more than half of all US citizens still own their own homes. For the past 20 years, the housing market has taken a lot of dips and dives! Home owning is still proving to be a positive move made in adulthood. We’ll go over some reasons.
Ownership
One of the biggest and most worthwhile reasons people buy homes is being able to do whatever you want with it. It’s yours! With renting, you can maybe paint a wall, but the options of updating or changing anything are very limited. Even if you don’t intend to change things, it’s up to you, not a landlord. That’s a pleasant notion.
Stability
When you own, you call more of the financial shots. You pick the loan and payment plan. You can refinance it or sell it when the time is right. It’s up to you.
That makes the choice a little more stable than when someone else is deciding. A landlord can raise the rent whenever they want. It can be unpredictable, especially when the neighborhood around you changes.
Community Belonging & Care
It’s no secret that when you own something, you’ll to want to give it the best care. This feeling is mutual to those that own their own homes. It’s common to see a lot of comradery and care in neighborhoods with a lot of homeowners.
We’re not stating that there is no pride among renters. Though tenants don’t feel the responsibility to take the utmost care since it’s not really theirs. Landlords can often take a backseat too, since they aren’t personally living on the premises. They don’t feel the urgency to take proper care all of the time.
Building Equity
When you make an upgrade to the property, it adds value. This means that when you go to sell, you will get more money, essentially, than what you paid. Updates and add-ons can have a great ROI rate depending. If the housing market is anything like it is today, you’ll have a really high chance of making your money back and then some!
Bottom Line for Owning VS Renting
There are a lot of reasons to own a home, but there is no shame in renting. If you are more mobile, waiting on housing, or just prefer not to make the investment, renting might be just right for your current status. Owning a home comes with a lot of responsibility and hard work. However, most who do it find it to be very rewarding in the long-run.
Tired of paying money to a landlord? Ready to take that big step to homeownership? Gregg can help! Gregg Sutter is a knowledgeable, hard-working, honest Cincinnati Realtor who is easy to work with yet has an intense desire to succeed. Your new home starts with a phone call! Contact him at 513-404-3920 to get started today!
