by President/CEO, Roy Nash
Most housing publications will list a “Rent vs. Own” article in their periodicals at some time or another. Some may even take a look at this topic annually, as situations and circumstances can change from year to year, especially with this issue. From my perspective, I have always had strong and consistent feelings about this topic. Here are my thoughts:
Pride of ownership is one of the most important considerations. There is nothing like owning your own home – that sense of “It’s Mine!” The feeling of worth and accomplishment with homeownership is truly priceless. This pride of ownership can also become contagious in your neighborhood, as neighbors are fully aware when a family has “bought-in” to the neighborhood as only owners can do.
It’s the best financial investment a family could ever make. There is no other leveraged investment like homeownership. Your down-payment for a home leverages the purchase of a home that may be 5, 10, 20 or even 25 times more valuable than your initial down payment. So when your home goes up in value, it’s going up with the leverage your down-payment was able to purchase. Homes may have small market corrections from time to time, but overall, homes will continue to increase in value year after year, thus becoming the storehouse for most of our personal wealth.
The owned home provides stability for the family and for the neighborhood. Owners are less likely to sell and move every few years as renters have the privilege of doing without much notice. Homeowners tend to stay put for many years, and thus their families realize a comfort zone with their surroundings. Consequently, homeowners’ children typically do better in school, and homeowners tend to also be healthier than renters.
So, those are my top three reasons why homeownership is the best alternative in home occupancy. Certainly renting gives you the most flexibility, but that flexibility comes with a cost. You are always at the mercy of the owner/property manager. They own/manage the property, and they can dictate how much you pay and how long you can stay.
That’s my quick look at own vs. rent. Each family has to make the decision as to which scenario they want to follow – what’s right for them in their present situation. From my viewpoint, homeownership is the absolute best decision a family can make for their present and future livelihood!