Owning a home has long been considered an integral part of the American Dream, something to aspire to and, at least in general terms, a viable course of action for people seeking to own a hard asset whose value potentially may appreciate significantly over time. But changing market dynamics — rising home prices, uncertainty about interest rates and the like — along with peoples’ shifting priorities have raised new questions about home ownership and how exactly it fits in today’s version of the American Dream.
This article is the first in a series of four developed by the Financial Planning Association® (FPA®) to provide answers to some of those pressing questions by exploring issues such as purchasing vs. renting a home, the home purchasing process for first-time home buyers, maximizing the value of a home as an asset, and ways to fund a home remodel/renovation.
The first article tackles the “Rent or own?” question, with insight from CERTIFIED FINANCIAL PLANNER™ professionals who are members of FPA.
What’s best, owning a home or renting one?
The answer: It depends — on a person’s stage in life, geographic location, priorities, financial circumstances and other considerations.