The American Dream has always been about life, liberty, and the pursuit of happiness. The imagery that would always come to mind when speaking about the American Dream most often include the white picket fence and summer parties in a nice backyard porch with a barbecue pit. For a time, this particular scenario was put in the backseat as the real estate market went into crisis but apparently, the ghost of the housing crisis has all but come to pass.
Image Source: Investment Zen
According to the National Association of Realtors®’ 2017 National Housing Pulse Survey, 84% of Americans now believe that purchasing a home is a good financial decision. This is the highest percentage since 2007 – before the housing crisis. Those surveyed pointed out five major reasons why they believe home ownership is a good financial decision:
- Home ownership means the money you spend on housing goes towards building equity, rather than to a landlord
- Home ownership creates the opportunity to pay off a mortgage and own your home by the time you retire
- Home ownership is an investment opportunity that builds long-term wealth and increases net worth
- Home ownership means a stable and predictable monthly mortgage payment
- Home ownership allows for various deductions on federal, state, and local income taxes
The survey also revealed that the majority of Americans strongly agree that home ownership helps create safe, secure, and stable environments.
What Does This Mean For You?
Put simply: Last decade's housing bubble is becoming a distant memory and everyone loves real estate as an investment again. A recent study published by the real estate website trulia.com indicates that if first-time home owners can manage the payments, it pays for most households to take the so-called leap of faith.
The authors of the said study estimated the monthly cost of owning the average home - putting into consideration property taxes, insurance, income tax deduction benefits and the like - and put it against those to comparable rental dwellings. They found out that, across the country (Yes. Including those expensive locales like San Francisco and New York) generally, it is less costly to buy than rent.
Know that The Dream IS Alive.
Beyond the numbers, having the freedom to customize your living space and avoiding the risk of being asked to move if the landlord suddenly decides to sell the property takes precedence and makes more people want to get their piece of the American dream. So, buy a sensible home for yourself to take roots in and hold on to it for the long haul. It will prove itself to be your sound investment.