Homeowners also have the benefit of decorating and making changes to their home as they see if including painting and renovations to meet specific desires or needs of the living space (Leonhardt, 2005). They can modify their home in any way that suits them and that they feel adds value to their experience. Renters do not have the same benefit as they are often not allowed to modify the rented space in any way and any small alterations such as paint must be approved by the landlord.
Even with all of these benefits there still remains the social aspect of home ownership that is deeply imbedded in the American culture. Traditionally it has meant a great deal to American families to own their own homes and has been encouraged through our cultural beliefs and values. In fact this encouragement has taken the form of various political policies throughout history including those aimed at tax relief to homeowners as well as efforts to assist first time homeowners with lower mortgage interest rates. Further, owning one's own property or piece of land is the cornerstone on which our countries democracy was built therefore constituting the "American Dream." It is also believed that home ownership should be encourage because owners take greater responsibility for their families, the communities in which they live, and they seek opportunities to provide better environments for their children (White, 1997).
Home ownership has been described as a force of social stabilization. Research has shown that home owners have an increased sense of community well-being and often advocate for better schools, decreased crime, and neighborhood improvements and upkeep (White, 1997). This is partially due to the fact that homeowners have a greater financial stake in their communities and neighborhoods as a direct result of the large investment of wealth in their home.
It is also believed that homeownership provides individuals with opportunities to learn skills that can be transferable into daily living. Home owners often experience scenarios in which their home requires repairs and they can either learn to make small...
Obviously, those for whom the idea of owning a home represents an important goal will not receive that same satisfaction or gratification from renting property. Whereas net worth that is locked up in a home generally increases over time, there is absolutely no residual value to money used to pay rent on property. Homeowners (generally) pay off a mortgage on a monthly schedule but that money goes into the
Renting vs. Purchasing a Home The decision to rent a home, rather than buy one, is complex but comes down in favor of renting. In addition to a credit shortage, buyers are skittish about investing their money in what seems to be a losing proposition. After all these factors are considered, the thriving rental market is no surprise. The decision to rent a home, rather than buy one, is complex but comes
Rent vs. Buy Because of many factors and costs to consider, the decision to rent vs. buy continues to plague the minds of many. A strategy for one person may not be a prudent strategy for another. Hence, the answer is rather relative as oppose to an absolute or universal decision. The real estate market is one of a cyclical nature, with periods of ebbs and flows. However, the key is
Rent vs. Own Housing serves as a shelter for all the people and their family, satisfying their main physical need and holding the equipment people need for their daily routines. Although the necessity of having a housing unit is clear, owning a house has become fashionable and is looked upon nowadays as a long-run investment decision which provides stable and rather good return. In this scope, the tenure choice, or the
Rent V Own Qualifying the Buyer -- How to determine whether one should Own or Rent There's an old saying in real estate sales, that an agent must "qualify the buyer." What this means is that before an agent decides to work with a prospective home buyer, the agent must ask certain questions about the buyer's financial status, employment history, wants and needs, before the agent sends the buyer listings or takes
Low Income Home Loans as Public Policy Since World War II, the United States government has developed public policies that aim to increase opportunities for home ownership through direct housing grants, loan guarantees, and targeted tax breaks (Dye, 2001). For many low-income families, these policies enabled them to purchase a home. Many of these policies were focused on providing assistance to low-income people. The Housing Act of 1959 expanded the Federal Housing
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