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I would like to see a reference to the original article and the study that supports the OP claims.
National Homeownership Month? What is it actually? if not an organized effort on the part of realtors to promote their own agenda. So do these claims surprise anyone?
I suggest we take such 'statistics' with two pounds of salt until they are replicated by an agency with no dog in the fight.
This is a joke. The main reason for not buying a home and renting would be because you don't have the means to buy a home. It boils down to people with more wealth have kids that do better in school and they have more wealth than people with less wealth.
IMHO, there are also those who are owner-builders who have "less wealth" but built their own homes regardless.
I suspect that their example inspires their children, too.
PLUS ownership. Because only ownership builds wealth, provides security, and makes you immune from rent inflation.
True, but it doesn't have to be ownership in real estate as you seem to believe. One can rent and have ownership in cash, stocks, bonds, precious metals, art, rare autographed Ramones albums, etc. and build wealth. Security is a side-effect of wealth.
I don't own a home, yet I manage to feel quite financially secure and am happy with the freedom it brings me instead of always trying to angle at how not owning a home makes me some hapless victim of government policies. Bottom line = if you manage to be a failure while renting your whole life, you'd likely manage the same if someone handed you the opportunity to buy a house.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by freemkt
PLUS ownership. Because only ownership builds wealth, provides security, and makes you immune from rent inflation.
Problem with apartments and trailer parks is they don't enable ownership.
you've already admitted that landlords simply pass on costs to renters. Thus taxes, ins, etc goes up, rent goes up as rent inflation. If you are the homeowner your costs went up so you are not immune to that rent inflation.
security in that you own your house and all the sunk money and and earthquake can take it away. Doesn't sound to secure. Neighborhood or economy goes south and you house goes down in value and you can't sell it and you are stuck. not so secure. If you rent simply move.
Wealth is primarily based on income unless one inherits money. Wealth cannot exist in the absence of adequate income regardless of whether one rents or owns. There are many house poor folks who fare no better than renters. And in fact, may do considerably worse. Their properties may not appreciate normally due to deferred maintenance and are sometimes lost due to non payment of taxes or mortgages losing whatever down payment and principal paid. How much one makes is always the primary driver of possible wealth.
Extremely valid points UNC. In a sense, buying a home is many things.
1. Land - Often the most valuable component, aside from when factoring depreciation....
- Is the land suitable for alternative uses?
- Is the local area showing an increase or decrease in population?
- Is there an environmental factor decreasing the utility or the land? (i.e. high crime area, next to a landfill, relatively few public amenities.)
2. Home - This value actually fluctuates wildly, but tends to drop.
- Is it stylishly modern? (sweet shag carpets man....)
- Is it accessible? (Sir, this condo is just up the 4 flights of stairs to your left.)
- Is it functionally modern? (cloth wiring to modern, lead paint, asbestos tiles, internet, electrical grid, adequate outlets etc. etc.)
- Has it been maintained? (HVAC, paint etc.)
The reality is money has to be put into homes or they will fall apart or become obsolete, land just needs the property taxes to be paid. The mindset between a homeowner that realizes they have to responsibly use their property and care for it is wildly different than renters who can call a sup and complain when something doesn't work. When I rented, I didn't care what went down the drain, I certainly wasn't going to be looking to repair things or care if someone was hanging out and causing problems.
Now, most people can make that switch, but it is funny how suddenly you start caring about how good your school is, your neighborhood, what's happening around you. You own more than your house...you own your community and you want it better. You own your job and you stay....well, most people anyway...because you have this giant mortgage that you're looking at every month....the reality is, the renters are looking at an even bigger mortgage, but there's not a nice handy statement. It's just....I need $x for the month.
So yes, there are huge financial benefits to home ownership....if you're in a growing area, but it takes discipline as well. That discipline can spill over into other areas of your life. You can build a network, be involved with the city functions, know the neighboring businesses etc. That's going to help your family....unless its a government project that's flooded with a bunch of people that haven't figured it out, and getting something made to order without needing to earn it....that changes things too.
It's a process. It's roses, complete with thorns. You work so hard to finally get that cardboard crappiest home on the block, that process is validating. You got in. You can start your next chapter there. You receive it in some other way, you won't get that same thing...and it's important to do that.
I don't think the families can exist. Specifically, I don't think family A can be married ("one spouse...") because to qualify for Medicaid, their income would have to be so low as to make family B unrealistic is B is to have the same income as A. Perhaps family A is unmarried, in which case A and B could have equal income with custodial parent A qualifying for Medicaid and subsidized child care while unmarried.
Both families do indeed exist. We’re Family B, while our neighbors are Family A. I have no idea if they are legally married, but they refer to themselves as husband and wife. As far as the income being the same, it’s quite simple: only one of their incomes is on the books and straddling the poverty line, and they have the bare minimum deductions. While we have FICA, health insurance, pension and 403B contributions, union dues, as well as dependent care flexible spending account contributions being deducted.
on point 1, you and your crew buy the land and make it into a trailer park.
on point 2, drat - I should have read the whole thread. you've shot my condo idea down.
1) Populated places do not allow you to place trailers on your own land. It's called zoning. If you wanna live in a trailer you have to place it in a park or move it to the boondocks.
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