Nation of homeowners vs. Nation of renters.
American Dream of homeownership in its classic form looks like this: about 2/3 of Americans live in their own homes, and another 1/3 of population rent from private or corporate landlords.
You need to work hard to save money, build the credit and gain the goal of owning the home. Home ownership is a hard earned privilege, it is honorable and respectable status. Home ownership means responsibility, financial stability and great enjoyment.
This classic picture looks just right.
Today's landscape, however, is pretty much different and very far from its classic form.
Home ownership is not a Dream any more. Many of over-mortgaged owners get confused and feel trapped in their current homes. Many former home owners lost their homes to foreclosure and Short sales.
Home ownership rate dropped from almost 69% to 64%. Worst is that those who lost their homes are out of market to borrow money for the next house for another long four to seven years before they re-build their credit and save substantial cash.
And I would definitely work on re-building credit and saving money rather than giving up of the American Dream.
Reality is that today rent is the only choice for those who can't buy.
But what if you can? What are you waiting for?
Rent becomes more expensive. Simple law of demand and supply. It' s more affordable to own the house than to rent. That's true for Greater Cleveland. That's true for 74% of American markets.
If you are qualified, why should you waste an opportunity to buy at the historically lowest price and borrow money for your purchase at a historically lowest rate?
Rent is not only more expensive today, it lessens your rights of enjoyment, it limits your ability to create a home for your family on your terms and in your style.
Just think about this: if people don't buy homes, banks will eventually own the majority of Real Estate in America. Banks will dictate the rules and condition of your private life. Banks and government will tell you where to live, what color to paint your walls and when to replace the carpet.
Do you want to be an independent and responsible homeowner or do you want to rent your next house from Bank of America?
