Buying vs. Owning a Home
Every time we move to a new place, one of the first questions people always ask us is:
“Are you going to buy a house there?”
There is something about buying a home, owning land, that plays in to the very nature of the American Dream. Having property that is completely yours feels like the very epitome of fulfilling our dream of life, liberty and the pursuit of happiness.
But there is a huge difference between buying a home, and owning one
Remember the Recession
Those of us who witnessed the Great Recession in 2008 (people I like to call, children of the recession), saw their families go through immense hardships; most families did not make it out of the recession living the same lifestyle they had before the crash.
What was so troubling to me as a child, especially one growing up in California, was not that I noticed the families who had much larger homes and more lavish lifestyles than we did, but it was the fact that I did not understand why most of my friends had to leave their homes and move to other places.
At the time, I did not understand why this “mass exodus” was occurring, but it seemed like every day a new friend was having to move out of their home. Many left the city, and even the state of California altogether.
The crash in 2008 taught me a very valuable lesson, but one that I was not able to fully understand until I become much older. Amidst all the confusion, family trials and difficulties of this time, I was finally able to piece everything together, and came to this realization:
Just because someone looks like they are living the dream, does not mean it is reality.
What had appeared to me as a teenager of people living lavish lifestyles, living in half-million dollar homes, and driving cars that cost more than my family’s annual income–was really just a façade…even to those who were actually living that life.
Purchasing expensive homes, cars, jewelry, gifts, and Juicy Couture purses (the symbol of status among teenage girls where I grew up) was incredibly easy to do. All that was necessary was to open up a credit card, apply for a mortgage for a home that was well above your means, or lease a brand new car by signing on the dotted line.
While it all seemed very simple to live the life you want, it was not reality–it was bought on borrowed time.
Buying a home is easy, all you have to do is get a loan and sign a piece of paper. Owning a home is much more difficult.
Actually owning a home requires time and sacrifice–by saving up for a down payment, paying off the mortgage, or taking years to save enough money to buy a home outright in cash.
While this is a great sacrifice, it comes with a great benefit–your home is truly yours. There is no bank there to raise your interest rate if you signed up for a variable rate. There are no threats of foreclosure. There is no need to fear having to move out of your home because you can no longer afford the payments.
Perhaps I am too conservative in my views of buying a home, but my sights are set on a much longer-term, strategic goal for my family.
I do not want to buy a home, simply to say I can do whatever I want while I am making payments. I certainly am apprehensive about buying a home at every place I am stationed, pulling out a mortgage, and hoping I get renters in to help pay that mortgage so I am not stuck making multiple payments and risking foreclosure if I miss anything.
My sights are set on owning a home.
One where I do not have to make a mortgage payment. One where my name is on the deed, and I never have to worry about moving out if it is something I can no longer afford. One where my children can come and visit us one day as they grow and move out of the house.
One that I can pass on to my children and leave a lasting legacy.