Washington and New York have no organized lobbying groups for renters. Yet for 2012 renting is likely the best bet for many of those that still have yet to purchase a home and are thinking about diving in. The machine wants you to be a homeowner even if it devours every last cent of your disposable income and blindly following the herd will get you economically slaughtered. The new economic landscape brings benefits to those that rent.
The homeownership rate now has erased all the gains of the last decade because going into massive debt for an asset many cannot afford is simply not a smart move. Household incomes have not grown over the past decade. Many of the new jobs have relatively low job security and resemble more of the large temporary workforce that has dominated Japan for the last two decades. I see five major reasons why renting in 2012 makes financial sense over purchasing a home even with every banking and government subsidy being thrown your way.
Reason 1 – Flexibility for employment
One of the big reasons for renting is the flexibility of mobility. Many young professionals do not have the security of longer term employees. They also may have to move out to move up. For all the talk of economic recovery, the number of job openings isn’t too positive: Read more......