Why is owning a home considered the American dream?

Answer 1

Because owning a home is the most responsible thing you can achieve

Answer 2

I think it goes back to the colonial days when land ownership is one of the reasons people came to America.

In those time land ownership was reserved for the European Elite. Not something the everyday Joe could hope to aspire to. In the US however, it was easily attainable. Thus making Home ownership "The American Dream"

Is it still? Now there is a question. By last count over 2,000,000 households were in foreclosure. With the current state of the lending industry Congress, the Senate, and the White House are all making moves that amount to not much more than lip-service. All indicators are that the foreclosure rate is going to get worse before it gets any better.

American Dream? I think there are quite a few folks out there who would disagree......

PS. Just an additional note because of some of the responses posted to your question already. If anyone thinks that once you own a home it's yours, you are sadly mistaken. Do a Goggle search on "eminent domain" and you will find out just how little the "ownership" in home ownership really means. (or doesn't mean)

Answer 3

2

Answer 4

It's really simple.

Let's say you bought a house for $200,000, with a 30 year 7.5% fixed rate mortgage. The payments, with taxes and insurance, would be no more than $1,723 per month. Maybe less.

If you rent the same place, the rent will be no less than that, probably at least $1,750, since owning is always cheaper than renting.

If we assume Inflation of 1%, that means the entire rent will escalate by that much, but only the taxes and insurance will go up for the owner, along with the value.

At the end of 30 years, the owner's taxes and insurance have gone from $325 to $440, but since the home is paid off, the payment is now just $440. The rent has increased from $1,750 to $2400.

Now, in that 30 years, the owner has paid $640,000, some of which is deductible (taxes and interest), while the renter has paid $740,000, none of which is deductible.

On top of that, the renter has nothing, but the owner has an asset that (again at 1%) has appreciated to $270,000.

And the real kicker is that the homeowner will pay $440 per month, for taxes and insurance, and the renter will keep paying $2,400 per month.

It's also nice to live someplace where they can't throw you out to make room for their nephew, or raise the rent, or tell you what color the walls have to be, or tell you what kind of trees you're going to have, or tell you that you can't have a dog, or tell you you're making too much noise.

Answer 5

owning your own home gives a sense of stability and can be seen as an investment you can pass down to your children. the american dream is generally seen as husband+wife+ 2.5kids+ dog+house= am.dream. renting can be a good idea if you don't want that in your future but if you do, renting will end up costing you more in the end.

Answer 6

I will give you a for instance. Lets say you purchased a 200k home and it requires 5000 down and 1000 monthly. Lets say you arrange for a tenant to live in it and pay the 1000 monthly. Typically a home will double its value in around 10 years. Now lets say you sell the home in 2017 for 400k and pay off the remainder of the mortgage of approximately 160k. Now subtract your initial 5000 down from your 240k gain. That leaves a profit of 235k in ten years time. Where else in the world can you turn 5k into 235k in ten years time?

Answer 7

Because you own your own home. It's yours, and (assuming you keep up the payments), nobody can take it away from you. You can plant what you want, paint whatever color you want, mow how you want, etc. A man's home is his castle - and it's HIS castle, not one he rents from the king down the road.

Answer 8

It should be revised to the near impossible dream. I cant believe the payments now. Cant spend money on anything else ...it all goes to house payment

Answer 9

It's called owning your own land. Not everyone can afford to do this. It makes you the captain of your own ship-a landed person. You used to have to own land to vote. It's a privilege.

Answer 10

The Vegas chick is always right.