Quote:
Originally Posted by red92s
So I guess this means over half still DO think a home is a wealth-building tool?
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YES!
I think this becomes a regional question. & I believe it is a wealth-building tool, in certain regions, for the LONG TERM. People tend to think so short term.
LEt me put it this way, our Grandma sold her home in 2001 and has a pleasure of renting a low-end "closet" (with maid service and food included) for $30k per year. (This is all she could afford and it is not "nice" in the least - the only thing that is nice about it is it is on the right side of the tracks). She had a small, manageable home that cost only $2k per year in insurance and property taxes. Property taxes legally can not rise more than 2% per year where she lives. Throw in a few thousand a year for maintenance (on a well-maintained property). Um, she would be better off owning, for sure. BUT she pays for her massive rents with the massive equity she earned over the years. She could also, obviously, move about anywhere else and get much more reasonable rents. Which she will have to if she lives another 10 years.
On the flip side, if I lived anywhere where rent was significantly cheaper than owning - I would have no idea why people would own. I'd rent in a heartbeat if it didn't cost an arm and a leg (my perspective).
We expect more benefits when our home is paid, but for us, owning has paid off since day 1. Rents are just absurd here. In addition, the rental market is VERY volatile here. I don't know anyone who has been able to rent a home for more than a few years (landlords either were flipping in the past, or now all going into foreclosure). I have a number of friends who rent SFHs and move every year - NOT by choice. I'd certainly pay a premium to be able to stay in one place!