Has the “American Dream” changed from owning a home to having a job? My wife and I love to watch the program “Hidden Potential” on HGTV. We see expenses of 40k for this 15k for that. Final totals sometime reach over 100k. We also watch “Property Virgins”. We find our-self asking, “Where do these people get their money from?” Both programs deal with either buying a home or improving one.
With the downturn in the housing market the past few years, many individuals are upside down on their homes. Many individuals are in home foreclosure. It use to be that the American Dream was owning your own home. The dream was so real, that banks and finance corporations would go out of their way to give you your dream. For many individuals it was just that, “a dream.”
The “American Dream” has now switched to having a job. It might even be a job you hate. It might be a job that is having it’s medical insurance and retirement devalued. Still, it is a job. You accept the sacrifices, because you do have a job.
There are some people that still believe that buying a home is the way to go. When you look at the cost of leasing or renting, buying a home might still be the way to go. There are factors to consider though. When you buy, you are committed to an area. You will have added expenses (taxes, down payment, insurance, utilities, remodeling, maintenance and other expenses).
Staying Within Your Means
Many individuals over extend themselves by getting in too deep. If you can stay with what you know you can financially handle, buying a home can build up equity and value. The big problem is, when individuals refinance their homes, the temptation of extra cash is a killer. They use it to add to their property or worst yet, lifestyles. Many people think they are saving money but, by the time you include added expenses, you might not be saving what you thought.
Many individuals blame the banks for the housing problem. The blame should be with all of us. There is nothing wrong with having a dream. We just have to keep it realistic.