The other day, a banker wanted to know if I owned a home; I told her, “No, I am a homebuyer.” She then stated, “I am showing that you have a home loan, so you are a homeowner.” “Because I have a mortgage is exactly why I am not a homeowner; the bank is the homeowner.”
Savionaires, as you weather this recession storm, you may want to review how you look at homeownership. There was no doubt in my mind that I would always buy homes; I am on my third one. However, the reality is you never truly own a home unless you pay cash for it or have paid off the mortgage. Until then, you are buying it from the bank.
Once the housing market recovers in few years, I plan to sell my place, which has lost a third of its value because of the recession. Yes, like so many savionaires, I am upside down/underwater on my mortgage. What I have learned from this experience is I will never buy another place unless I pay cash for it, or I will become flexible, attachment-free, and responsibility-free by becoming a renter. More and more savionaires are opting out of wanting to buy a home even if they can afford one. Check out these articles by financial guru James Altucher: Why I Am Never Going To Own A Home Again and 7 Reasons Not To Buy A Home.
Thema’s Tip: Just like homeownership has become part of the American Nightmare, so has college. I don’t believe in going to college, unless you are going for a vocation that requires credentials. If you want your children to have the college experience, then I suggest sending them for a year only. I went to school for 6 years and used absolutely nothing from my 2 degrees to make it in life. How have your views changed about homeownership and college because of the recession?