Home ownership has been widely regarded as the "best financial investment," and the most certain path to financial prosperity. Consequently, millions of Americans are obsessed about purchasing a home, believing that it holds the answer to their financial future. Yet, few people have taken the time to understand the long-term, financial ramifications associated with home ownership.



What if this popular, "best investment," choice is nothing more than a dangerous nightmare? Research indicates that millions of people assume thousands of dollars in mortgage debt to purchase homes they can't afford; they spend more than 30 years trying to repay the note; and at best, most home owners achieve no more than zero percent return on their home investment. Worse, many lose money on the deal.

Some people are now beginning to believe that home ownership is a huge economic scam designed to keep the masses broke. All indications show that a home is nothing more than a huge "financial burden." The house is likened to an "insatiable beast" that continues to require scarce financial resources from its buyer. While the home appears to be "the solution" to financial prosperity, ironically, nothing (no product, service, or practice) saps more wealth from home owners than the house.

"Home equity" (the appreciated value of the house, over debt owed) is the eventual prize for most home owners, the main alluring factor that draws people to home buying. Home owners hope to make thousands of dollars in profit when they sell the property. Be it $25,000 or $250,000, home equity is a "phantom," something that's here today but could disappear tomorrow. At best, the money is conditional, meaning that the property must be sold in a good market to retrieve the funds. Any other action regarding home equity could prove financially disastrous for the home owner.

Ultimately, those who benefit the most from home ownership are NOT the buyers, as most people believe. The profiteers include the government, mortgage lenders, home builders, realtors, and home remodelers. Meanwhile, home owners stay broke as they continue to pour money into the property, hoping to make a profit when they sell the home. In the end, few people realize that they have lost money during the years of occupancy.

Over the years, the housing industry has denigrated renters by making them feel less successful or accomplished than home owners. The tone has implied everything short of calling them "idiots" who waste their money on rent each month. But when home owners and renters are compared side-by-side, renters continue to retain tremendous advantages over home owners. Their finances, flexibility, and freedom affords them huge leverages over the majority of home owners, giving them the opportunity to beat the financial outcome of those who buy houses.

Keep renting, and learn how to diversify your resources for long-term financial prosperity. The answer is NOT in home ownership.

Best regards,

Tom Graneau, Sr.