What Are The Pros And Cons Of Home Ownership

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“It's easy to underestimate the real cost of home ownership.” (Suze Orman). This quote, perhaps more than with any other generation, hits home with Millennials. In past generations, home ownership was considered one of the pinnacles of achievement in somebody’s life. Owning your own home was something that the majority of people sought after. But with Millennials, this bench mark seems to have become less important. Among Millennials, home ownership is not as prevalent as it was with past generations. So the question becomes, what has changed the minds of Millennials? To start, let us discuss the pros of home ownership. From a financial perspective, owning a home is much like owning any other piece of property, it is an asset. With proper…show more content…
That same personal freedom that comes from owning a home also comes with a financial restriction. A person cannot simply walk away from owning a house if they no longer feel like taking care of it or if they don’t want to pay the mortgage anymore. Rather, getting out of the process of owning a home, selling it and the like, is far more involved than the process of getting out of a simple rental agreement. As such, people who chose not to put their money into owning a home have an easier time with being able to pack up and leave if they so choose, without much added hassle. Perhaps even more important than that, however, is the cost of owning a home. Buying a home is no simple endeavor; it involves a lot of financial logistics. Unless someone has a lump sum of several hundred thousand dollars lying around, chances are they won’t be able to just buy a house on the spot. Because of this, most people have to set up loans, typically through a bank, which they have to make payments on monthly, in the form of a mortgage. Managing a mortgage on a house is a sizeable stress that not everyone can…show more content…
The cost is probably the most prevalent factor in decision making. Perhaps, Millennials simply do not find home purchase as feasible in the modern economy, and who can blame them? Lots of people have been feeling a tighter budget in the modern U.S., economic stagnation and increased cost of living have hit a lot of people hard. From this perspective, it is no surprise that some Millennials might err on the side of not investing in a home. It is less about not wanting a home, and more about not being able to pay for it, an unfortunate fact of the current
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