The American Dream is not home ownership. Bank’s would like you to think that home ownership and maxing out your credit cards for Santa is the American Dream. The American Dream is what each of us decide it may be for ourselves.
Each persons desires and circumstances determine what is best for them as it relates to home ownership.
I have a very stable job and I rent. Not because I have to move each month after skipping out on the rent. Instead, I want to downsize as my family shrinks. With my kids being educated, with no debt and able to survive on their own they will move out. I do not want a home for 5 when just 2 of us are left. I will continue to live in the same area. Just not the same home.
Sure, you are creating equity in your home. I just put that money into my savings and kids education each semester instead of mortgage payments. And, I will not have to find a buyer to withdraw that value. It will be in my kids education and my savings account.
One day, my view may change. For now, I just prefer to return to the wonderful lake view found on my rental property and enjoy a cup of coffee with my out of debt wife.
The simple things.
The only point that I am making is as you get older, the cost of living may increase more than your retirement savings. The rental on your lake view property will be more expensive, and you may have to move. No one is talking about the cost of hiring a moving company to move, and that can be considerable, especially if you are older and have less ability to pay or move furniture by yourself.. When I own, my cost are fixed except for property tax, which would have to be paid in a rent if I rented. If you rent, you also should have a renters insurance policy in lieu of homeowners insurance.
Owning a home is not for everyone, but I see what is happening with my sibling, as he should have bought years ago and he would not be facing the uncertainty that he is now experiencing.