I have been a homeowner most of my life. Very early on I recognized the value of earning equity rather than paying rent and having nothing to show for it at the end of the year. Things have changed in this basic belief that owning your home is the American dream. You do get something for your rent check…a place to live and call home, and you don’t have to deal with the maintenance and upkeep of the property.
The tax incentives were always a driving force behind my desire to own, along with the building equity, which now doesn’t happen very fast anymore, if at all. I’ve come to realize that the main reason I’ve always wanted to own my home is freedom and control. I don’t want to ask someone what color I can paint my living room, or if I can have a garden in my front yard.
Richard Green, director of the USC Lusk Center for Real Estate, said there are also non-financial reasons for buying. "I can enjoy living in this house for the rest of my life, and nobody can throw me out of it," he said. "You are consuming something, and you have control over it, and control has some value."
With the historic low interest rates, I’m still a big proponent of buying vs. renting!