And since this is my blog I will feel free to talk about it.
I really think that some people need a reality check about life in these uncertain times. I am so sick of seeing newlyweds, young professionals or even people like us pushed and pushed into buying a home. It's just assumed that owning a home is the end all be all of the American dream.
People tell them renting is throwing their money away. A home will build equity. At least they'll have something to show for their money.
Let me tell you, people. That is not always the case.
If you think renting is throwing money away try buying a home, spending years fixing it up, worrying over resell values, choosing paints, carpets and finishes that aren't your first choice but are a good value choice for your home. Fence a yard with a picket fence, plant flowers, build a swing set, put on an over sized deck, pressure wash everything regularly, buff and shine the floors and touch up the paint yearly. Now, find out you have to move out of state, put the house on the market and wait 8 months. Have no one look at it. Beg the mortgage lender for a "short sale", be denied. Beg the listing agent to let you drop the 6% to half so you can drop the price, get laughed at.
And then begins a vicious financial cycle that will take years to set right. You have to start letting one thing slide to take care of another and finally you lose more than you could imagine.
There are no certainties any more. Our home was very desirable when we bought it. A great neighborhood, a great little town. It was the perfect suburban neighborhood. Houses were going faster than they could be built. Then a plant closes. Another company pulls out. The builder decides to start a second phase of the development and DROPS HIS PRICES. The new homes are selling for less than any of you paid. Suddenly you have a stone around your neck and you are sinking fast.
And sure, everyone dreams of buying a home and living in it for 30 years and raising their children in it. The truth is that simply isn't always possible. I'm sure there are people that do it. More people that don't. Did you know that you have to own a house for 15 years before it becomes a better investment than renting? And that doesn't count repairs and alterations you have to make.
And I'm not saying people shouldn't own a home. They absolutely should. Home ownership can be wonderful. It just simply isn't always the smart investment everyone thinks it is. Give a young couple time to see where their life and careers are going to take them. Don't tie down a professional who has to pass up a promotion because it requires a transfer and there is no way the house will sell. There are lots of skilled professionals out of work who have to turn down the job because they are stuck in their homes in another state.
I am simply tired of the pushing. People that push us. Ask us if WE are tired of renting. The truth is, after last year, renting is wonderful. But we also have fabulous landlords who let us treat this home as our own. They take care of things when they go wrong. Right now I'm waiting for a guy to come and fix the kitchen window. It cracked during a nasty cold spell. In the days of home ownership that would have been a huge budget buster.
And I see it happen to couples who have just gotten married. People pushing them to get out and buy a house. It's a buyers market!!! Buy!! They don't remember WHY it is a buyers market. Someone is going to get screwed in the deal. And next time, it might be them. What happens when he or she gets the opportunity after a year for a better job or loses the one they have? I just think we wouldn't be in such a mess if people would slow down a little.
I'm no economist. I'm not a fortune teller. You can't know what is going to happen and owning a home shouldn't be something you just jump into. And pushing someone until they believe that unless they own a home they are a failure isn't helping anyone.
As for me, yes, I want to own another home some day. It's going to be a while. For one thing we just aren't in the financial shape to do it. For another, I don't know how long we'll be in this town. I'm not about to tie myself down when things are so uncertain. I figure my next home purchase may even be my cabin in the woods and my husband and I will retire there. And when we are old and gray, and our time is come, we can just be buried in the back yard.
Wonder what that will do to the resell value?
2 days ago
2 comments:
It is a scary time. We were lucky enough to buy and sell our first house and buy our 2nd house in good markets. My husband works for the state, so a transfer isn't likely (LOL). But, you're right - people don't need to overextend themselves, especially in this uncertain time.
Looking in our backyard that we want to clean up so we can put a garden in this spring makes me want to be a renter too. The cost to take down one of the several southern oaks back there? $500! Plus we need to repaint interior and exterior. Carpet needs replaced. I need a new oven. The list goes on and on.
On top of that, our home values are going down. Meanwhile our governor just announced he is getting rid of the tax relief grants to counties. That means our property taxes are going to go up!
There's good and bad in every situation, but these days the advantage of being a homeowner is not a sure thing.
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