Will you buy another home?
If you had to do it all over again, would you buy another home?
The rate of homeownership is forecast to keep tumbling in the next decade to lows not seen since the 1980s, USA Today reports.
The percentage of households that own homes hit a peak of almost 70% in 2004 and 2005. By the second quarter of this year, that slipped to 67.4%, according to the Census Bureau.
Now, a University of Utah analysis projects it’ll drop to about 63.5% by 2020 — the lowest since 1985, USA Today reports.
“It will fall steadily by about half a point per year,” says Arthur C. Nelson, director of the university’s Metropolitan Research Center. “We’ll have far more renters in the future.”
What about you? Will you look at renting in the future instead of buying?
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28 comments Add your comment
The Dogfighter Returns
August 6th, 2009
11:52 am
O f course. I bought one that was within my means and I could pay off in 10 years.
RJ
August 6th, 2009
1:29 pm
No way! I can afford my mortgage and love my home! Now I’m BUYING rental properties!!
Interesting
August 6th, 2009
1:47 pm
Yes, house is too small and in the wrong area. Kids have to go to private school because of the test scores of schools in my area.
absolutly
August 6th, 2009
1:54 pm
If Obama keep with anothe stimilus plan I woud by another one.
DX
August 6th, 2009
2:09 pm
I would buy land and build on it.Far, far away from the meth addicts from hell who are my neighbors at the present time.
buckshotannie
August 6th, 2009
3:17 pm
We sold our home before the bubble burst but now are still trapped in an apartment. My husband got laid off and is still looking for work. Thank God we are in an apartment. The kind of houses we were looking for and could well afford on his income in addition to mine would have been much higher than our rent. We are in a higher priced complex with good security and amenities and are getting through this economic crisis without hitting up the savings account because our costs are fixed and low. Same utilities each month, same housing costs, no surprise repairs. We are not buying until we have 20% down and a year of expenses in the savings account and can afford a 15 year loan. It’s not so bad. A little noise from time to time from yappy little dogs or kids gone wild but not too bad.
hryder
August 6th, 2009
3:34 pm
Fortunately, I was educated financially at a very early age by my father and through knowledge gained by a guided summer school economics course during high school. The University of Nebrasksa had developed the program. My father dropped out of high school after his junior year to support his mother and siblings when his father passed prior to reaching age 50. My wife and I own everthing we have, house, cars, clothes,etc., and have since age 38 and 40, respectively. We are now 65 and 67, having retired at ages 54 and 56. We would have accomplished this earlier but accumulated debts while I completed an academic terminal degree. We rented until those debts were paid. We purchased a house at that time and paid that loan as quickly as possible. Since that time we pay cash for everything except daily/monthly expenses. We use a no fee credit card for those expenses as we receive a 1 up to 5% rebate, dependent on the item, and pay the card in full monthly. Our current home is worht over $300,000 and overlooks a green of a golf course in our community. We paid cash a few years ago and will never rent a permanent residence in our life time. We also spend two or more months a year at beaches or in the Rockies in rental houses, having determined we did not want the headaches associated with the owning and vacationing limitations of a second/third house. Our rule, except on the first house, was everything is paid in full within a month of purchase and if it can not be paid in full it is not purchased until it can be paid in full. We did this while being employed as teachers for our entire professional careers with my wife staying home until both of our children were in school full time.
Doug
August 6th, 2009
4:19 pm
I’m 31 and I feel trapped by my home ownership. My wife and I can’t move closer to my job to save money because I can’t sell the house. When the economy swings enough for us to sell, we’ll put it for sale and rent for a while to have the freedom to not be so trapped.
The ‘American Dream’ of home ownership was perfect for the days when people worked for the same employer for 30 years, with a great pension and family closeby. For our generation, owning a home at the wrong point is like swimming to shore with a concrete block tied to your ankle.
SKR
August 6th, 2009
4:56 pm
I purchased my home 12 years ago. Worked like a dog and paid it off in 10 years. It’s ALMOST 4000 sq feet and I want to downsize to something smaller but with some privacy. However, I don’t desire to give away my home at present. Most home buyers at present have the mentality that if it’s for sale you are desperate. I’ll pass until the foreclosures clear out of the market in a couple years. Then, hopefully be able to get market value and move on down the line.
Goforit
August 6th, 2009
5:03 pm
If buying a mortgage is affordable why rent? I would not buy new home, and as far as renting, you can expect your rent to increase 20% to 50% within one year or more.
AnnieR
August 6th, 2009
5:27 pm
One day maybe…. when I pay off my current mortgage or win the lottery – whichever comes first!
GRACE
August 6th, 2009
5:57 pm
REGRET. I am in an upside down mortgage. I bought my home in a new subdivision 3yrs ago. 25% of the subdivsion has not been sold. The homes have already decreased in value. My home would have been $25-30k cheaper buying it today.
Jason
August 6th, 2009
6:00 pm
Just bought one.
Misty
August 6th, 2009
6:06 pm
I am looking towards next year to purchase a home, based on certain conditions like I pay cash for the house. I’m currently renting and owned a home several years ago, but I never want to be in a position to worry about someone taking my home away from me, or stressed because I no longer can afford a mortgage. I learned some time ago, it’s so much better to live beneath your means, and buy only what you really need, and store somethings up for a rainy day because lately there are more rainy days than sunshine and who knows when the economy,housing and job market will really turn around; the economist are talking atleast another two years. If I can’t afford to pay cash, or atleast put down a substanial down payment, I will just continue to rent and actually at that point get something less than what I’m paying now to save even more money.
Dave
August 6th, 2009
9:12 pm
Home ownership is vastly overrated. Part of the recent financial meltdown was caused by the belief that it’s almost treason not to be a homeowner. I sold my house 5 years ago and have never regretting renting. I read a blog today which describes owning a home as an albatross instead the piggy bank it might been several years ago. My rent has increased very little and my utilities are lower than before, I don’t pay for trash pickup and I don’t have to mow the grass. When repairs are needed, I pick up the phone and call the owner. When I retire in a few years, I won’t have to worry about selling a house if I decide to relocate.
Nativeson71
August 7th, 2009
8:16 am
I bought my house in 2006 for $122,000. Since then the value has been flat but not negative. It is a modest restored old house in Smyrna. I am close to everything with low Cobb taxes and EXCELLENT Cobb services (Fire, Emergency, Schools, Libraries). If my house were located in ‘trendy’ East Atlanta I would have paid $250+ and I would have seen significant depreciation. I was looking for a ‘funky’ old house yet affordable and near bars, restaunts & parks. I found that in Smyrna. To all of my East Atlanta, L5P’s, Midtown friends in your overpriced, trendy, hip & cool neighborhoods…who were puzzled about my choice of neighborhoods…if you were ‘REAL urban pioneers’ you would have understood; but you are not; you were just following a ‘trend.’ I wish you still had money to meet me at Atkins Park for a beer…but you don’t. Would I buy a house again? YES! In fact I would love to buy 2 or 3 in my own neighborhood / renovate them, rent them out for 5 years and then sell them. Where else but smyrna can you get a 1000sqft on a qtr acre, 11 miles from Buckhead for $100,000 or less?
Brad Steel
August 7th, 2009
9:15 am
Home ownership is way over-rated and overblown by the housing and mortgage industries. It’s a sales job that has many suffering from their well overdue buyer’s remorse.
But is the government keeps subsidizing home purchases and ownership with tax credits, tax deductions and government-sponsored loans, the free stuff may be too seductive.
JohnF
August 7th, 2009
3:39 pm
I bought a modest brick ranch in a good area of Atlanta 17 years ago and paid it off 7 years ago…about the time I met my spouse. We decided to buy something together in July 2006, and put a contract on a pre-construction condo in a “hip” area of Atlanta…closed on it and moved in a year later, with the intention of selling my paid off house after we made some necessary repairs and renovations. But it didn’t work out..Some of the was that our expectations weren’t met, and some of it was that our expectations weren’t realistic..but we moved back into our lovely renovated house, and the condo is now for sale and has been for 8 months, and listed at $60K below what we paid. Because we have a mortgage on this with a significant downpayment, we will lose a lot of money on it.
That being said, I would definitely buy another house…but never pre-construction..never again.
However, anyone that says renting is just as good as owning a home is just fooling themselves. Rental rates will continue to rise and home prices will continue to be more affordable. Even if homes don’t re-capture the appreciation that they did in the past, it’s still better than some landlord or property manager telling you what you can and can’t do…and they always find a way to keep your deposits. And not all landlords are exactly speedy when it comes to making repairs or enforcing rules concerning noise and pets.
And whether people like it or not, there is a certain esteem granted to people that own their own home..much like the same esteem that is given to people that marry. It says you’re mature, you’re stable, and in most cases (traditionally anyway) you’re dependable.
VW
August 7th, 2009
4:55 pm
I bought my condo years ago and would have been in dire straits several times except for the fact that my mortgage is modest – and indeed, less than renting anything of similar size and quality. I would like to have a bit of a yard and more room for my avocations and would definitely consider buying a house if I found something affordable.
Frank Simmons
August 8th, 2009
2:16 pm
Aren’t most in ATL metro area luckier than other metro’s because Atlanta will rebound better than a lot of cities because there was such a high demand before which should return? It seems it more a matter of weathering the storm and/or holding on to enjoy the narket at a later date. ATL never did bubble like LA and other over-inflated markets such as Florida, west and east coasts.
bobfromAcworth
August 9th, 2009
4:32 am
Funny to listen to all the “I did all this right” bunch on this blog. I really don’t care what you did and how you did it in Nebraska or wherever you were brought up. The fact is that home ownership has been sponsored by the Fed (read that IRS tax code) for so long that people look for that big tax deduction. If there were no tax deduction then see how many would ever put a mortgage on a house! So some of you here can pay cash for a house, so what! You then still have to pay maintenance on everything that happens to that house. Owning a home is expensive no matter how you look at it. If you don’t see that then you are deceiving yourself. The value of your home is dependant on what people can afford to pay for it. How many of these 4000 sq. ft homes do you think will sell in the next few years as the older generation has to sell off to “downsize”? The next generation is not going to be able to afford the houses at those prices due to the socialism (High taxes) that Obama is pushing on them right now. Good luck getting your home values to come back up! It will go the way of owning an expensive Harley! The values will keep plunging as more people try to sell than there are people able to purchase.
GraceandMercy
August 9th, 2009
7:57 am
I just need God to bless me. I want to help others, I want to purchase a new home. I want to pay my tithes and offerings. Everything else will fall in place. Thank God I have no credit card debit. I need a job.Looking everyday. Over qualified by some HR underpaid staff people, but my BLESSING is on the way.
wgarider
August 9th, 2009
8:17 am
We’ll never go back to renting……as soon as we are empty-nesters, we’ll sell the house we have now and find something smaller……..
Rob Vinson
August 10th, 2009
9:46 am
I sell real estate and it’s a great time to buy. It is not a great time to sell, but if you have to sell, you will get beat up on the front, but when you go to buy, you will make it up, so it evens out. Money is hard to come by, but if you have good credit and a good job, banks are still making loans. FHA is good right now allowing people to put just 3.5% down to buy a home. I have been in my home for 10 years and don’t plan to buy another one anytime soon. I still think owning property is better than renting. You get the interest deduction and the appreciation, but it’s not for everyone. It’s the biggest purchase a lot of folks ever make and it is a commitment that should not be taken lightly.
The Truth
August 10th, 2009
9:50 am
I eventually will sell my home and buy a larger and less expensive home OTP or in another state (depending on my career plans). I agree with the some previous comments, the benefits of homeownership are primarily psychological and social, not financial or economic. Truth is without the government creating the 30-yr mortgage, providing FHA, VA, and other mortgage insurance programs; and the tax deduduction for mortgage interest, home prices would be tremendously lower and demand for homes would be lower because fewer people would be able to buy a home and those in the market would have less buying capacity. Ask yourself this: why do most corporations lease their property yet most individuals (based on the homeownership rate) own their homes? Yet, like many others, I would buy another home primarily for the psychological and social benefits, fully acknowledging that it is not the best economic decision.
Freedom _reigns
August 10th, 2009
5:00 pm
My Husband and I bought our home 3 years ago, and have steadily watched the value of it decline, while the property taxes rise. And honestly, renting is looking more appealing to us each day. In “our” experience, we’ve learned that “owning” a home really isn’t all it’s hyped up to be, we’ve lived the American Dream..been there, done that. Maybe years from now we’ll buy again, but right now we’re looking to rent, and have found some really nice houses that offer more, and the rent is less than what we’re now paying in mortgage.
Lee
August 10th, 2009
5:05 pm
Gee, didn’t any of the bloggers read “Rich Dad, Poor Dad”. Owing a single family unit IS not the way to go. Please buy or go to your library or borrow it from a friend and read it before you purchase another piece of property
Carisa
September 6th, 2009
10:21 pm
I’m so tired of home ownership being pushed upon us. My husband and I were pressured into buying a house by his mom and dad a few years ago. Since our financial situation has changed dramatically, we can no longer afford our home. We pay our bills each month, then struggle to keep our head above water until the next paycheck. It’s ridiculous. We’ve decided to get rid of our house and move into a smaller apartment and save money for a few years. Seems a lot of people in America have it in their heads that Home has to come with a mortgage. Home is what you make it. And if Home means moving into an aprtment and saving over $600 a month in expenses, then so be it.