Owning a car and buying a home have always been the American dream. As a real estate broker, I am extremely happy when my clients buy homes. That is what a real estate broker does. However, in my view the decision on whether to rent a home or buy a home should depend on each individual’s situation. Some people who have just moved to a new town may want to rent for a while and get familiar with the city before they finally decide where they want to live. Some people who are starting or expanding their business may need to save their cash by temporarily renting a home. Some people who are just divorced may decide to rent and then buy a home when their life is more settled. Some people are young and single and have decided to not buy a house until they are married. Some people have bad credit or a bankruptcy in their background and need some time to improve their credit score. Some people are very busy with work and hobbies and don’t want to spend time and money maintaining a home. There are many different reasons why people may choose to rent rather than buy a home.
However, many people still consider owning a home to be the American dream and plan to buy a home when they are financially ready. They may consider buying a home once they start a family. There are also some people who have sufficient savings and excellent income who may buy a home even though they are not married and don’t have children. Buying a home or renting a home all depends on individual situations. As real estate and financial leaders and advisors, we should not steer people to buy or to rent. What happened in the 2008 economic and real estate crisis? Real estate and financial leaders and builders strongly encouraged people to buy houses that they could not afford. When more and more people buy homes, builders love it because they can build more homes and make more profits. Financial institutions, mortgage companies, and mortgage and real estate brokers also love it when people buy homes because that is how they make their living every day. Therefore, they push people into borrowing a lot of money and buying homes even if they cannot afford it. Fannie Mae, Ginnie Mae and Freddie Mac also contributed to the inflated market by lowering credit standards. Finally, it pushed the market to a point of economic crisis.