Advantages And Disadvantages Of Owning Home

It seems that over the decades, the “American Dream” has changed along with the generations who follow it. After the “Great Recession”, the housing crisis which triggered a financial crisis, and millennials have changed their point of view about homeownership. This change created another definition for the “American Dream”, because more opt out to rent versus buy, and some don’t bother with houses at all and prefer to live in apartments. This is all due to rising student debt, risks associated with owning a home, and the fact that homes are often suited for families and it’s been proven that millennials are pushing back the age for conceiving children.

America is seen as the land of opportunity in that there are endless possibilities for an individual. In this land of opportunity, Americans strive to obtain the ideal known as the American dream. The American Dream is seen as the accomplishment of an ambition achieved while challenged by adversity.1 Americans often associate this success with the ownership of a home. The home is not simply a place of basic protection; there is a much deeper connection to the individual. Ownership of a home grants freedom and security that establishes a sense permanency for the individual. In contrast, renting a living space possesses a semblance of instability and dependence.2 The desire to improve ones’ position in life inspires one to

Despite this fact, home ownership in the economic and social landscape of today is a big responsibility. Economically, most millennial most likely cannot afford to own their own home. A mortgage is a much larger payment than rent for an apartment. Similarly, owning a home means paying for gas, electric, water and furniture to fill a house; this also includes any grounds upkeep depending on the home’s location and property taxes. Socially, Millennials seem to be straying away from owning a home because it

Some of the renting and owning advantages and disadvantages that need to be considered are; The financial obligation. When you rent you commonly have a one year lease, or less, so you are only financially obligated to pay the agreed upon rent for a year, after that you have the choice of signing another lease, or moving somewhere else. When you buy a home, you are obligated for 15, 20 or 30 years. You can sell a house if you need to move, but selling a house is rarely a quick

” Housing is the number one item considered when the American Dream is thought of. Because of the increase of housing prices, all Americans are finding it hard to achieve their own American Dream; they believe if they cannot find a house, one of the simplest tasks to do on the American Dream list, they will not ever be able to achieve the rest of their

Bernie Sanders once said, “For many, the American dream has become a nightmare”. The American Dream is a cultural belief that anyone can achieve prosperity through hard work and determination. Millennials, however, are having a hard time achieving the dream as quickly as prior generations were able to. Home ownership rates for Americans under 35 years old are at a record low. The Millennial generation, those born between 1981 and 1997, is the largest in the United States’ history. According to a 2017 Harvard study, only 31% of Millennials own homes. This could be attributed to numerous factors such as student loans, later marriage, and the housing crisis of 2008. While putting off owning a home has its benefits, there are also several cons that come along with it. Are Millennials unable to attain the “American Dream”, or is the generation simply re-defining it? Certainly, homeownership is a complicated aspect in the lives of American Millennials.

We, more than any other age, want stability. No one wants to see that in us because it’s a tough fight to get it, but we want to self-manage and have financial certainty. Houses mean something entirely different to us than to others. We don’t see houses as necessities or obligations. We don’t take mortgages lightly or settle into some place we’re not happy with. The real estate market has some new customers who are taking their choices seriously. To us, that house has to be earned, and it’s also an investment. We don’t feel an obligation to settle into that house; we want it because of what it offers us. That house can grant both stability and financial security. Making an investment like that is something that overjoys a generation still shaken from the uncertainty of the market crash. When we make investments, we become adults. There is nothing scarier or more exhilarating than stepping away from an age where we can’t control the world around us into being at the wheel. The housing market may not have the same customers as it once did, but these customers are ones who aren’t taking any decisions lightly. Stepping from dorm to apartment to renting and, finally, to owning a home is a terrifying journey. Nobody should take it lightly, but we should take it. We’re ready to take on mortgages and handle the economy in a new

A core tenet of the American dream is home ownership. At the turn of the century, young adults were buying homes. However, since the bursting of the housing bubble and the resulting mortgage banking crash, the rate of younger Americans purchasing a home has fallen sharply. Many millenials – those born between 1981 and 1997 – want to own a home, but doing so is financially beyond their reach. Half of recent college graduates have no full-time job (Kadlec, 2014), and those that do may be described as underemployed. The increasing diversity of that demographic is positively correlated with the downward trend in personal economic health (Drew, 2015; Myers & Simmons, 2017). The worsening financial strain leads young adults to postpone marriage and family, which also reduces the need for them to own a home. In fairness, the problem faced by millenials is only a microcosm of that faced by the populace as a whole. Home ownership for the population as a whole is the lowest it has been in over 20 years (Fry & Brown, 2016).

The investment within the real estate sector may be relatively expensive, but the returns are good and rewarding to the investor. There is a rise in renting prices over the past decade and analysts are predicting that the rental prices may continue to be on the rise (Stone 1). Therefore, any person who foresees a future in asset investment is highly advised to get into the real estate owing to the significant benefits that are highly likely to be realized within the sector. The housing issue in the United States is pushing millennials not to consider the purchase of houses. According to an article in The Guardian, there was a jump in acquisition of single-family homes by approximately 16.6% with the median price of the houses being $321,100 (Mcgee 1). The article further describes that the Great Depression is the most significant contributor to the fear of millennials to move out of their parent’s houses. On top of this, about 36% of people within the age bracket of 18-35 years fear to leave with their parents and within their family homes as opposed to moving homes and finding their houses or private shelters (Mcgee

When someone makes the decision to buy or rent a home they must consider the advantages and disadvantages of each. In buying a home the primary advantage is that you actually own it. You can do whatever you want with it. Also, you are building equity as the years go by. “People today have problems saving for their future” (CNN Money, 2014). However, when they buy a home, the

Assuming Millennials can overcome the financial factors working against home ownership, then they must look at the non-financial factors – which are equally as rough to navigate. Start with job mobility. If a Millennial is lucky enough to find a well-paying job that will support student loan debts and a mortgage, the job is likely non-entry level within an organization. The job may require frequent travel which would decrease time available to maintain one’s house. The job may require relocation – which can be costly if the company is not picking up the cost (and fewer companies are these days). Additionally, technology is creating a more mobile work environment – meaning employees don’t necessarily have to live near their places of employments any more. Work today from your timeshare in Florida and tomorrow from your parents’ spare bedroom. Mobility makes it almost silly for

Maybe to them it will be simply easier than to pay off what might be required to pay for the house. Or maybe the dreaded mortgage of which we've all heard of will come to wreak havoc on our day. Maybe they do not want to deal with the little things that come with a house. Like a lawn or a yard that must be continuously maintained. Or the everyday simple problems that can arise in the household that otherwise the landlord would fix. But no matter the pros and cons of the ownership of a

A common belief is that it is better to own your own place to live as opposed to renting one from someone else. What has made this belief so common and is it accurate? While there can be a emotional gratitude to owning your own home, does that make it a better financial decision? There can be many advantages to renting a place to live as opposed to owning your own home.

Buying a house is probably the single most expensive purchase Malaysians make in their entire life (HBA, 2002). For many of us, it is a known fact that the loan will take between 10 and 20 years to pay off.. Still, after decided to have a commitment towards house installment, house purchasers continue to face risks of abandonment as current housing delivery system i.e. Sell-Then-Build allows developers to sell houses that are not yet constructed and ready to be vacant. However, by the implementation of Build-Then-Sell 10:90 variant housing delivery system, the days house purchasers having to bear the brunt of a failed project are over.

The advantage of renting a dwelling is the lack of time commitment required. If a lease is required, it may be for a one-year term. If the situation is not agreeable to the tenant, or the tenant needs to relocate out of the area, or prefers a different location, the option to move is available without a penalty. Some rental units may be available on a monthly basis. While many rental agreements require a security deposit, that deposit would be significantly less than a down payment and loan closing costs required for the purchase of a residence. While the rental amount may cover the owner’s cost of insurance, maintenance, and taxes, they are not the direct responsibility the tenant. Maintenance and repairs are also the responsibility of the property owner not the tenant. A tenant has much less responsibility than the property owner.