Buying a Home is a Fine Decision, Just Not a Financial One

The U.S. homeownership rate fell to the lowest in more than half a century as rising prices put buying out of reach for many renters. The homeownership rate reached a peak of 69.2 percent in June 2004, but it has steadily lowered. Buying a home is still a fine decision, just not a financial one. As Taylor Tepper explained on MSN Money: “Homeownership comes with a host of risks, too. You’re sinking a large portion of your savings into an asset that’s expensive to maintain, and may be extremely difficult to sell. People move, jobs change, markets tank, life happens. There’s no guarantee that you’ll want to live in the same area in two years, much less that your family situation will remain constant… The truth is that, for most people, buying a home is as much about sentiment as it is about dollars and cents. Indeed, young renters who aspire to homeownership do so to control their living space, have a sense of privacy and security, and establish a place to raise a family, according to Fannie Mae. They want a home for the freedom it confers. Don’t like those cabinets? Hate the carpet? You can generally do what you please if you’re the owner. You have to pay for that freedom, and it doesn’t come cheap. But it’s worth remembering that whether to rent or buy isn’t a clear-cut decision. And it’s certainly not only about finances. Rather it’s a reflection of your particular desires — which means you should think deeply about what it is you’re after. If you’re looking to leverage your savings to build more money for the future, you could easily end up disappointed. You’re likely to be more satisfied, however, if you’re trying to create something lasting for you and your family.” (msn.com)