Owning a home is not for everyone as the past 5 to 7 years has come to show. ACTUALLY – advancing successful home ownership is the basis of a “Healthy American Economy”, strongly encouraged from our United States President right on down the line to the Real Estate Brokers who work to make it happen.
BUT – some may say – look what happened in the recent past. Look at how many people lost their homes. OK so let’s take a few steps back and re-examine what happened. Perhaps we won’t cover every aspect of what happened – but there is one important reason Home Ownership failed so many families/people during the crash of our economy.
Inadequate preparation OR “COMPLETE LACK of preparation” was a key factor that contributed to so many home foreclosures. What am I saying? By the peak of escalating home prices back in 2005-06, people were buying homes without really giving much thought to what they were doing. It sounded good so why not jump on the band wagon and – well if the banks were willing to give out the money – why shouldn’t they buy their very own home?
And while they were at it – why not buy a new car and electronic equipment – flat screen TV’s and new cell phones and the list of desired toys went on – all because the money was being given out in-discriminately . Why not make every one of our dreams come true?
However – how prepared/educated were these individuals – those who wanted to “UP” their living/lifestyles by owning a home rather than to paying rent? In some instances there was little to NO guidance offered, and thus like a child whose “EYE’S WERE BIGGER THAN THEIR STOMACHS”, millions of people grasped at the chance to join the rank and files of home ownership without any understanding of what was involved or required over the long term. Aside from being able to claim temporary ownership rights to their realized dream – these people also watched in horror as their dreams crashed along with our economy. Some didn’t understand what happened yet wanted answers – laid blame in whichever direction they could – all the while slowly coming to understand that home ownership is somewhat of a privilege – saddled with responsibilities both physical and financial.
Even through the last 5 + years of fading home ownership – Realtors recognized the importance of supporting & encouraging active home ownership – fighting to maintain tax benefits – while engaging programs designed to educate the next generation of home Buyers with the intent to help avoid a repeat of the previous failures.
So here we are – the embers of short sales and foreclosures while dimming - still light the financial skies as the roar of failing mortgages continue to lose their monstrous control over frightened families.
The benefits of these past years are equally as great as they were destructive. Home buyers are more aware that homes require maintenance. Buying to your “Maximum” purchasing power is much less appealing – while staying within established financial constraints has become a far more important criterion. So why home ownership over renting? Well the truth is – it is NOT for everyone – just because you want it – however today more than ever before in the past 30 years, owning a home can provide stability – both physically and financially– while we work on the emotional part of the process.
Consult a PROFESSIONAL REALTOR to help determine whether or not owning a home is right for you and whether you are ready and prepared for taking on such a responsibility. It’s OK if owning is not right for you at this time - don’t sweat It, as preparing for such an endeavor can be fun and educational in it’s own right.