I read an interesting and shocking statistic that came out this week. Almost 1 in 5 Americans are living in poverty now. Wow! And in the most powerful country in the world. What a difference half a decade has made!
Both the real estate bubble that burst and our anemic economic recovery have altered the fortunes of millions. Having been born while most of our currency was still made of silver, I”ve seen the economic highs and lows over the years. But this protracted and slow recovery has been different from all the others I’ve seen.
I, like millions of Americans, could be bearing witness to the permanent collapse of our country as we’ve known it. But, that’s for another blog post. If you haven’t been negatively affected by what has been going on lately though, consider yourself one of the lucky ones.
I thought about including all the pros and cons about buying vs renting. But, I felt that if I did that, I’d be doing a disservice by regurgitating old material that can already be found easily on the web. Instead, I thought I’d impart some thoughts about our values. Values that drove millions of people to attain home ownership and that may be forever altered as a result of what has been happening for several years now.
To rent or not to rent. What should you do? Well, way back when, there was a time when I too, like most of you, could only afford an apartment. Over time, that evolved into a mobile home rental, a condo rental, a house rental and finally the opportunity to buy.
The reasons people buy are varied and numerous but most do it because, over time, you’re just better off financially in the long run and who couldn’t be happier with a place they could finally call their own? Well, that just hasn’t turned out to be true for a lot of people anymore; even if you followed the rules.
There have been huge job losses recently with the biggest now being among public sector workers; teachers, postal workers, etc. Theirs had job security that was once second to none. Not so anymore. This is the new economy.
Speaking of the private sector, I have a friend who was a pilot for a major airline for 18 years. Unfortunately, he only actually worked for them for five. He was furloughed the other 13! This is the new economy.
Hundreds of thousands of people have been foreclosed upon, left unemployed and declared bankruptcy. Many are living with mom and dad again. The advantages of home ownership, while still applicable for many, are just a distant memory for others and somthing alot would rather forget. Those who are too old, will never recover from it either. Maybe renting wasn’t so terrible after all.
Most current and former renters will tell you that they were able to travel a heck of a lot more when they had the disposable income to do so. They also had a lot more freedom. Most have the option of socking away more cash every month because expenses are just lower too.
As an owner, you can look forward to much of your disposable income getting eaten up with mortgage and maintenance bills. Pride of ownership, right? Just remember that every time something breaks. Don’t forget about the property taxes, insurance and upkeep either.
Renting comes with alot more freedom but the uneviable subjugation of having to obey owners while owning come with a loss of that freedom and its increased costs; costs that are higher than many could have ever imagined.
