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Homeownership is a Privilege

Homeownership is a privilege, not an entitlement simply because it's time to own rather than rent. While I know I will step on some toes, I want to fully disclose that I do know that bad things can happen to good, honest, hardworking people. I know that a lawsuit, a divorce, a job loss, a medical debt, a bankruptcy, a foreclosure can take down a financial empire. That's not what I mean. But I have also known people who has been irresponsible with finances. Those who simply want to walk away.

In my previous post, Renting feels like it's Borrowing, I shared a client's own words on how he felt about transitioning into homeownership and how much more he feels is enriched because he is in his own place now. When he was renting, it felt as if "he didn't belong there" and as if "he was only borrowing".

Renting is not a sin. Renting may be the answer for some people in some circumstances, whether it is a temporary place to figure out the next step, a temporary spot for financial clean up or even a season in life where you didn't want a homeownership commitment. All those reasons and more are absolutely totally acceptable so as long as renting is not the way of life on a long-term basis.

Homeownership should be rewarded for those who can show high financial responsibility. Hence, no late payments and no blemishes on credit worthiness. Homeownership should be treated as if it's a privilege - a special favor for those who are deserving.

When banks have to seize properties back in foreclosure, no one wins. The bank losses, the homeowner losses and even the neighbors hurt in property values when massive foreclosures occur in neighborhoods.

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Contact:

Loreena Yeo
Realtor®/ Broker of 3:16 team REALTY
(214) 783-2210
loreena@loreenayeo.com

Super-serving Frisco, Plano, Dallas, McKinney, Allen, Little Elm, Prosper, Celina, Richardson, Dallas M-Streets, Dallas White Rock Lake area communities and other surrounding areas.

Posted by Loreena Yeo - Broker|Realtor(R) of www.Frisco-TX-Homes.com (214) 783-2210 on 11/03/2009 07:35 PM

Comments (9)

Homeownership Is a Privilege in the Home Buying Channel

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Originally posted at: faithfully frisco tx homes for sale: Homeownership is a Privilege

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9 Comments on Homeownership is a Privilege

NOV

What beautiful homes for the price of a starter condo in our market. You could put a 1 in front of all your asking prices here. Home ownership in your area is very affordable.

Loreena - I don't think people recognize the fact that homeownership is a privilege, not a right or entitlement. I still remember planning and saving for our first home. There wasn't anything like interest only loans or 100% financing. We had to put down 10% and rates where 7 or 8%. In short, we had to be ready and prepared for homeownership. We also had mortgage insurance so we paid down the loan as fast as possible to get down to 80% LTV.

I agree. Home ownership is a privilege. When I purchased my first home, I put 20% down and my rate was around 8%.

Mine first rate was at 18% and I felt lucky to get it. 25% down was required too.

Owning you are right Loreena is a privilege and responsibility for sure. Big advantage is your control of your domicile and tax benefits. Negatives are financial risk with loss in value, lack of liquidity for your money, and the inability to possibly sell at YOUR price "quickly." Renting has advantages of being able to move fast but BIG negatives on lack of tax advantages, control of decorating the property, rising rents, and maybe just never feeling like it is HOME, as you said borrowing. Timeframe in how long you will stay there and where you are in life with moving and your income are key deciding factors of which is better. I ALWAYS tell all people ONE is not necessarily always better than the other. The answer is IT DEPENDS!!

Loreena - you are so right. Our society has become one of entitlement and instant gratification. It's time we got back to basics.

Hi Loreena,

So very true. And your statement about "When banks have to seize properties back in foreclosure, no one wins..." you are so right, it imacts everyone, and it's not always about finances.

At this point I wonder how some of the "children of foreclosure" will be impacted years from now? I can tell you personally it's something that my own father never got over.

Good food for thought. And I don't think you're stepping on any toes. You clearly differentiated the differences in who you were addressing. This is a good one!

NOV

Hi Loreena... sadly, what you describe reflects a societal econiomic concern that extends beyond housing. We, as a society, have combined a sense of entitlement (where everything is perceived to be a right) with our need for immediate gratification for every urge or desire. What ever happened to saving up IN ADAVANCE or layaway for big ticket items so that our spending was done responsibly? Instead, as a society, we have grown accustomed to over extending ourselves and expecting to be bailed out for our poor spending habits when things take a bad turn.

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