A Privilege, Not a Right

According to a survey from Trulia, as home ownership falls to a ten-year low, the  number of renters who plan to enter the home buying market is also on a steady decline.  In July, 72% of American adults polled said owning a home was part of the 'American Dream.'  Six months ago that same number was 77%.

While researchers say that people delaying their home purchases, or deciding to not purchase at all, could have a domino effect and delay the economic recovery in the United States, I have to say I actually feel this is good news.  Who in the hell ever decided owning a home was one's 'god-given right' as an American?  This kind of thinking is part of what to led to economic collapse in the first place.  With much of the country still in the clutches of foreclosure why should we continue to think we are 'entitled' to own a home?

Before I elaborate too much more, let me first say this: I realize there are so many people out there who bought homes responsibly with a huge down payment, had a comfortable savings, and paid all their bills on time.  Then the recession hit, they lost their jobs, their savings dwindled and they eventually lost their homes.  My heart does go out to those people.

My heart does not go out to any homeowner who had to struggle to come up with their down payment, entered into one of those ridiculous home loans with the balloon payments on the end, or thought they deserved to be a home owner when they struggled to make ends meet or pay their bills on time.  Why did so many people in this situation feel they deserved to own a home?  That's what renting is for.  This may sound callous, and yes banks are at fault for offering home loans to people with shaky credit.

Personally I would never, ever, try to purchase a home unless I had paid off my debts, my credit score was above a 720, and I had 40% set aside as a down payment.

But this whole 'American Dream' thing is silly.  Does owning a home with a heavy mortgage out in the suburbs with one or two car payments and the trapeze act you walk with your check book each month make you more of an American?  No.  Home ownership is a privilege for those who have learned how to balance their budgets and manage their money, for those who have proven they can save money, for those who can actually afford to own a home.