Do We Really Own Any Of Our House

My dad frequently said, "If you think that you own your house, just stop paying your mortgage and see who owns it!"

And, monthly, as I log online to pay mine, I ask myself that very question, "Who does own your home, Joan?"

Yeah... Who does own it?

What an annoying thought.

Yet, isn't it fascinating that even with this sage advice, I still bought a house at the ripe YOUNG age of 20? Barely married two years and into the mortgage market, I went.

Keep in mind, back then, mortgage companies didn't consider a wife's income to qualify. It didn't much matter that I'd been working since my teens.

And, let's not forget our credit scores went the way of the husband. Wives, and women, didn't have credit scores, legally, until the mid-'70s. 1974 to be exact with the Equal Credit Opportunity Act (ECOA).

So what possessed me to dive into a mortgage thereupon many roadblocks, lack of rights, and, as my dad said, "Who the heck owns this property anyway?"

Not to mention, I even have "owned" seven homes since then. All of which have had mortgages. ALL OF THEM! How crazy is that!

The American Dream -- when did it become about owning a home?

Ever wonder who coined the term "American Dream?" Not only did he coin the term but he somehow managed to convince us we could have that dream.

A dream that we all grew up believing was the reality, the sole thanks to living successfully in America.

Would you be surprised to seek out out that the American Dream was the brainchild of James Truslow Adams? a person born to wealth, who began his career as an underwriter, turned writer and historian in his later years.

He persuaded us all that we could have that dream.

He had us hunger after the life he described -- "A life where everyone can live an upscale life, where opportunities abound, and barriers of the past don't hamper our progress." (What is that the American Dream in 2016).

But, when did the American Dream morph into a house within the suburbs, a white paling, 2.5 children, and a dog? Most would say it began within the long-gone 1950s. And, yet, this dream remains considerably alive today.

So, if the 50's are long gone, why is it we still hunger after and need to have our own home? what's it that has us hold on so tightly to a dream of the past?

Here are seven reasons we use to shop for home... Reasons that I, too, have used, alongside what I even have heard from clients, friends, and... well, almost anyone who has bought into the thought of owning a home.
Equity. Money purchased rent is money never seen again, but mortgage payments build equity ownership interest.
Tax Benefits. The U.S. Tax Code allows you to deduct the interest you pay on your mortgage, your property taxes, and a few of the prices involved in buying a home.
Appreciation. Historically, the land has had a long-term, stable growth in value.
Savings. Building equity in your house is a ready-made savings plan.
Predictability. Unlike rent, your fixed-rate mortgage payments don't rise over the years so your housing costs may very well decline as you own the house longer.
Freedom. the house is yours. you'll decorate any way you would like and choose the kinds of upgrades and new amenities that appeal to your lifestyle
Stability & Security. Remaining in one neighborhood for several years allows you and your family time to create long-lasting relationships within the community. It also offers children the advantage of educational and social continuity.

Yeah, all those reasons. Pretty darned good ones, too, aren't they? BUT, are they?

Then, why we Americans are more financially stretched than ever before? Is homeownership the be-all and end-all to living a satisfying, successful life?

What about the downsides to purchasing a house? Have we truly stopped and thought of them before we jumped in convinced the water is fine?

Here are a couple of downsides to think about --
Rent vs. Buy. What about the value of maintenance, upkeep, and renovation? Wouldn't it be nice if those costs were out of somebody else's pocket and not yours? predicament heater dies -- not your problem!
Let's Do the maths. You lose whenever if you think a mortgage helps you together with your taxes versus being mortgage-free.
Remember 2008? Many Americans lost their homes, did a brief sale, defaulted on their mortgages, and owed quite the house was worth. land doesn't always go up!
Built-in Savings? Not hardly. Unless you propose on selling your home and not buying another.
Debt is Debt. Ever calculated what proportion you'll buy that home IF you purchase it with a mortgage? that's if you EVER pay it off? But, let's face it, most American's will never do so and can be saddled with a mortgage for all times.
Property Taxes and Insurance don't go down.
Neighborhoods change. Who stays in one house for life any longer?

And, let's not forget that the American Dream has now morphed again -- not is it just the house, paling, 2.5 kids, and a dog.

Now we must include student (education) debt worries, out of pocket healthcare costs, and retirement funding not covered by employers.

Oh, and let's not forget a fresh car every couple of years that costs quite houses wont to cost.

Am I saying do not buy a home? do not buy a pleasant car? Not in the least. I don't wish to steal your dream.

What I wish to impart, suggest, encourage, and guide you to think about is that this --

Make sure the dream is yours, not someone else's.

Not the governments. Not the IRS. Not the realtor or mortgage lender. Not your parents, other relations or friends.

Because going the route of somebody else's dream usually finishes up with you in misery. Trapped. Broke. And, often living with regret.

Not to mention a bucket-load of debt!

With that in mind, one last suggestion -- roll in the hay without a debt!

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