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Homeownership is more than a consumption option. It is a cornerstone of the American capitalist system. The foundations upon which this nation was built. Like it or not, land grants, charters, deeds and titles were instituted as far back as the colonial days.
To give an example, in Venezuela, modern day dictator Chavez is busy reclaiming “underutilized” land from farmers who have held claim to their land since The Great Liberator, Simon De Bolivar ended Spanish rule. Chavez is requesting recorded proof by landowners dating back 200 years. Proof which they, of course, do not have. So goes the socialist revolution in one South American country. And if history is any indicator, a continued descent into a lower standard of living and despotism for that nation.
So you see, the question of owning vs. renting cannot be easily dissected from it’s social/societal implications. In other words, a renter nation is a nation without privitization. Without privitization you have socialism/communism which is the birthing ground for dictatorships and totalitarianism.
Do not mistake my opinions for a knock on renters in the free market, they are just as important to the free flow of persons up and down the social ladder. This is simply a commentary on the importance of home ownership as an underpinning to a capitalist society.
And in other happier news…The crocuses have all bloomed and the backyard is looking much more cheery!
Come on Spring!!
Bxgrl,
The flip side? My husbands parents, both his sisters, and his brother enjoy rent controlled apts. on the LES. Trust me, if we could have the sweet deal that they all have we’d be in an apt. from which we’d eventually be removed feet first!
The thought of my husband pulling the trigger and buying a house scared the living daylights out of them. It’s a completely foreign concept. So it’s exactly what you say…different strokes.
A lot of this issue has to do with how transitory people have become. The time period in the postwar years people did not change jobs, get divorced, or have as many upheavals in their lives is the time period that subscribed to the “buy over rent” philosophy the hardest. Nowadays, like much of life, it comes down to personal choices.
Good response, slopefarm at March 10, 2009 11:54 AM. But there is no such thing as a flawed question. That’s why you answered it, “It is neither a privilege or a necessity.”.
From wikipedia…
“In a broader sense, ‘privilege’ can refer to special powers or ‘de facto’ immunities held as a consequence of political power or wealth.”
Special powers as a consequence of wealth is the operative meaning of my use of the word ‘privilege’.
I don’t quite know what my point is. I think it has something to do with bailing out homeowners (which is only used to bail out banks but that’s an entirely different issue that I don’t want to get into at this time). The protesters at the Javits auction this past weekend come to mind.
***Bid half off peak comps***
My parents and many of their friends were renters for most, if not all of their lives. My father never wanted to own a house- I don’t know why- but there was never any “you must own to be successful” thing. Different strokes for different folk, THL :-). Many other relatives do own- and eventually my folks bought a condo in FLA- again, not because of some idea that it made him look successful, but because in FLA you couldn’t find decent rentals where they wanted to live. My father was a great guy- did a lot for other people, was responsible and upstanding, ran a successful business after years of hard work and failures along the way. It never mattered whther or not he owned a house.
Someday I’d like to own (or at least rent) a fabulous old pile upstate- my problem is not with people who own. It’s just been with the attitude of some of them toward renters. I know you love your house! We all want to come over for the food! And the cats 🙂 I can bring my guys over for play dates.
Folks;
On this topic,I highly recommend that you read the book “The Millionaire Next Door”, which came out about 5 years ago. This book nails it exactly right with regard to putting home ownership in perspective. Owning a single-family home is NOT an investment – it is a form of consumption. That is not to say that owning a home may not be the right move financially, that is, it is a better form of consumption than renting. It depends upon your circumstances. Ocassionally there appears on Brownstoner a poster named “Finance Guy” who outlines the key points of the “rent-versus-buy” decision perfectly.
IMO, the mortgage interest deduction is one of the biggest mistakes in public policy in the US. It is nothing more than a subsidy to consumption, and the day of reckoning for this policy is upon us.
When folks view the pruchase or lease of their home in the same manner as they do their car, we will have returned to sound economics in this country.
My $0.02.
People love to tout that mortgage interest is a deductible financial cost. While it’s true I just think of it as a nice bonus while you have a mortgage.
However, personally I think that you’re better served to pay off the mortgage early and be able to bank away that monthly payment money.
“The Jones’? They’re probably leveraged to the hilt.”
A lot of people are jonesing for some leverage these days.