A generation of renters or owners?

Recently the AJC had an article about Millennials waiting to buy and choosing to rent. This is nothing new. In 1978 interest rates were 9% on their way to 18% over the next 10 years. Tons of reason not to buy. We could not even imagine that 4/5/6% rates would ever be seen again. After all, these were the interest rates our parents got in the years following World War 2.

In the USA, all real estate will be owned by someone. That someone will either be me or you. Hopefully, it will be both of us. If you choose to rent who will you rent from? The owner. The owner who took the risk… The owner who borrowed the money… The owner who saw the opportunity to invest 3/5/10/20% of their own money and borrow the rest. The owner who liked the idea that they would enjoy the appreciation of 100% of the value of the property (yes, and the loss too), even with their “small” skin in the game.

There are always reasons to rent: only here for 1/2/3 years; bad credit; can’t afford it; etc. But when have you ever made an important decision that was free from risk? You’re right, it does not happen.

A long term renter’s mentality will increase the gap between the “haves” and the “have nots”. Home ownership is the great equalizer!

Is it financially safer to rent? maybe. Is it easier to rent? probably. Is it smarter to rent? sometimes. However, only out of necessity.

Someone will own the place you live. Only you will decide… Will it be you or your Landlord?

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