Comments on: Home Ownership is Still the American Dream

By: Karel Zeman

Karel Zeman — Thu, 22 Jan 2009 06:36:26 +0000

I’m a homeowner and, while my home is losing equity right now, I still enjoy the peace and quiet that comes with owning a home vs. renting. Also, owning brings other benefits as well. You have the freedom to change whatever you like (within zoning and HOA rules), you can be much louder than in an apartment and you get a nice tax break. I’m just hoping I can keep my head above water so I can keep paying my mortgage. Good thing I stuck to the 28% rule and went with a fixed rate when I purchased the home back in 2007.

By: Aaron

Aaron — Sun, 02 Nov 2008 17:22:12 +0000

Hi David,

I read this article a few weeks ago and I thought it might be pertinent to this entry. Let me know what you think.

http://realestate.yahoo.com/promo/renting-makes-more-financial-sense-than-homeownership.html;_ylc=X3oDMTFta3Jqcjk3BF9TAzI3MTYxNDkEX3MDOTc2MjA0NjUEc2VjA2ZwLXRvZGF5BHNsawNyZW50aW5nLWJldHRlcg–

By: Ren

Ren — Thu, 30 Oct 2008 16:18:14 +0000

I think those who got into trouble in this turmoil are mostly greedy people who are flipping properties.

Genuine home owners are still pretty safe.

By: Doug Wolkon

Doug Wolkon — Thu, 30 Oct 2008 08:04:18 +0000

The American Dream I remember was all about what we want to be when we grow up. How about an astronaut? But somehow, the American Dream became all about owning a home; and then suddenly this so-called dream has turned into a nightmare.

Credit to buy things has gone the way of the absence of trust that once reinforced it. Just like low mortgage rates and appreciating home prices ignited home ownership; now with real mortgage rates on the rise and prices falling, renting is and will be the default currency of choice.

By: marci

marci — Thu, 30 Oct 2008 01:58:35 +0000

I believe it depends on where you live as to whether it is cheaper to own or rent – one cannot just say renting is cheaper.
My prior home was a $512 mortgage payment, including taxes and insurance. As it was a 3/2, garage, wooded secluded lot, partial bay view, it would have rented for over $1200/month. It was MUCH cheaper to own than to rent.

On this current/final home, for the year I had a mortgage, it was $150/month, plus $1000 for the year in taxes/insurance. This home, a 2/2 with walkthru attic, would rent for over $1000/month.

In our area it is MUCH cheaper to own than to rent.

And of course, once the mortgage is paid off, who’s to argue with under $100/month for taxes and insurance???
Makes me sleep well at night and no landlord can evict me

This is My Personal American Dream – that I can live in, rent free, for the rest of my days! It’s a GREAT feeling! Simply the BEST!

By: Judi

Judi — Wed, 29 Oct 2008 14:56:36 +0000

Interesting. I know the media really hypes everything and I try to just think ‘what are my circumstances?’. Fortunately for me, I own my own home and have kept it up so it is worth more than I paid for it many years ago.

By: Matt @ MyFinancialRecovery.net

Matt @ MyFinancialRecovery.net — Wed, 29 Oct 2008 13:59:16 +0000

Sometimes the American Dream of owning a home seems like a far to distant dream for me.
I do agree that even if I had a mortgage where I owed more than the house is worth I would probably be happy just to have my own home. In fact right now I would be ecstatic to have my own home regardless of the mortgage vs. market value of the home.

By: Mike Huang

Mike Huang — Tue, 28 Oct 2008 22:43:53 +0000

Yea, luckily I still have a home with my parents right now. We wanted to sell the house before houses rose in price, but thank god we didn’t. A lot of homeowners here in LA now live in an apartment or condo because they sold their house and couldn’t afford one back. Now that houses are dropping in price, the economy is getting worse…

-Mike

By: MoneyNing

MoneyNing — Tue, 28 Oct 2008 17:20:14 +0000

Erica: Actually mine’s gone up more than 50% in 10 years but I did move. Just FYI, the reason why I moved was that the landlord increased my rent more than 10% within 1 year. He did make it sound reasonable in the letter but that didn’t help me financially at all.

We can always find people that have no rent increase just like we can find houses that have not appreciated in 10 years.

There’s no point arguing and the stat is not the point of the post (I’m not trying to argue that owning is better than renting at all).

I should have found a credible source before I put the stat up but please bear with me and consider yourself lucky to have a good landlord to only have a 6% rent increase in 4 years!

By: Erica Douglass

Erica Douglass — Tue, 28 Oct 2008 17:06:36 +0000

Cite, please. Has YOUR rent gone up 50% in 10 years?

I’ve lived in the Bay Area since 1999, and I currently pay less than I would have in 2000 to rent the place I’m living in now.

My rent has gone up a total of 6% in 4 years. That’s 1.5% per year.

It’s still much cheaper to rent than to own, and will continue to be for quite a while yet.

-Erica