The Myth that Buying and Owning a home is better than Renting
The housing market is a reflection of the employment market. Without employment, houses will not appreciate. And, if houses do not appreciate you will not benefit financially from owning your own home.
It's elementary really.
Not only that but property taxes will go up and deductions will go down. Why would property taxes go up in a declining market? Property taxes are not tied to the value of your property, they have more to do with the need of the state and political machinations than the value of your property and as we all know states are in dire need right now for revenue. For that reason alone you should avoid purchasing a home. In addition, as a home owner you are really stuck paying property taxes unless you sell your home to get out of them. You are putting yourself into a situation where you are held captive by the bureaucrats. No other tax can take advantage of you like the property tax. It doesn't matter if you have no income, it doesn't matter if you get sick, if you don't pay your property taxes you will lose your home.
Deductions will decline for the same reason that property taxes will go up, the government has lost a lot of money and tax revenues are at an all time low. Do you really think that they are going to allow you more deductions or even the same deductions when they are looking under every rock, crevice and leaf to find money?
Owning a home is expensive. When you own a home you are forced to pay for insurance, repairs, taxes and utilities that you would not have to pay for if you merely rented. These items add up fast and unless the house is appreciating at a steady incline you will actually lose money. Not only that but when you go to sell the house you will also have to pony up for the cost of a Realtor and in some states for transfer taxes that can be quite steep.
Moreover, owning a home makes moving very difficult. If you lose your job you have to sell the home first before moving and in this market that is not an easy thing to do (without taking a pretty big hit financially). Renters usually only need to give 30 days notice and they are done.
The whole idea of the American Dream of owning your own home, is really a ruse. No one really owns their own home anymore because most people have mortgages that they seldom pay off and even if you can manage that there will always be property taxes. A tax that you have little control over.
The people who tell you that buying is better than renting usually benefit from people buying verses renting. They are Realtors, the mortgage industry and the elite. They directly benefit. It would be like asking a stockbroker if the stock market will go up. What else would he or she say?
In conclusion, maybe you should consider renting a home rather than buying if you actually want to save time, frustration and money. I'm not suggesting that renting is always better than buying. There are instances that buying would make sense. If you plan on homesteading, it would be more practical to purchase a home verses renting because you would be planting crops and trees and you can't exactly pull all those up and go to another place if you wanted to rent. So if you are homesteading I would recommend buying verses renting. But in all other instances I think a careful look into the benefits of renting verses buying is in order.
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