Thursday, June 19, 2014

Are homeowners happier than renters?

Is there conventional wisdom on renting versus buying? A resounding yes is absolute from several tenants, but an equally loud yes also resonates from others. While the advantage of renting seems obvious to many tenants, many homebuyers contradict this notion, and the rent-or-buy debate never ends. Whatever reasons people have in choosing renting over buying or vice-versa, in the end, the answer to this question is what matters: “Who is happier, homeowners or renters?”

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This article from MSN Real Estate recounts some theories to answer this question.

 One theory is that renters are happier than homeowners because they don’t have to worry about mortgages and foreclosures. Although home ownership is a wise investment move, mortgage payment takes much of people’s income, making their homes as the only financial investment they can afford. This leaves them no way of investing in other properties or services as their needs dictate. They may even have to face the pain of foreclosure, should worse comes to worst.

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Another theory points out that homeowners are happier than renters because they are richer. Fortunately for them, this is generally true. MSN revealed that the median net worth of a homeowner in 2012 was over 34 times that of a renter. Data released by the National Association of Realtors stated that a homeowner has about $174,500, while a renter has $5,100. Buyers have a reason to be happy, indeed. 

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Yet, a 2005 survey affirmed that renters spend more time with loved ones. Meanwhile, another study said that homeowners have higher self-esteem.

In the midst of this argy-bargy, no one wins. If property ownership is a gauge of happiness, then so be it. But people have to be open to other options and see beyond what money can buy.  

Whether you are buying a house or renting an apartment, there is a plethora of choices that suit your needs. Find the best deals and options for you from this Jeff Yarbrough Facebook page or this website.