The people who like to provide us with doom and gloom have an interesting take on home ownership. They seem to feel that owning a home is not an asset and that the mortgage payee himself or herself is the asset. This asset of course is to the bank that supplied the originally money to purchase the home and is the sole beneficiary of the owners toil to attempt to pay back the home loan. The homeowner also has the obligation to do the repairs on the home, pay property taxes for the home, and in general do the maintenance for the home during the mortgage period.
According to one article I read it stated that:
Smart investors know that homes are not assets; they’re liabilities. Assets generate income, homes deplete income. Ever notice how banks, upon foreclosure of a house, will quickly sell it? Banks don’t wait for homes to appreciate in value because of the expenses involved in maintenance. The home is not the asset, the mortgage payer is the asset! The revenue generated by mortgage interest is where the banks make their money. Banks and real estate agents have conned an entire generation into believing that their home is their number one investment. The more debt-slaves there are, the better off the leeches in the banking and real estate world will be. Really, have you ever wondered what “mortgage” means? It is a combination of two French words of “mort” (death) and “gage” (contract). So, you are essentially signing a death pledge or contract when taking a loan out for a house! It is total brainwashing.
WOW! I never looked at owning a home this way before. I have owned 5 homes in my life and I never even knew I was a bank slave! LOL But when one looks at the alternative, renting, I fail to see how owning a home is such a great disadvantage. Those rent receipts don’t offer anything except a windfall for the building owner. Mortgage and property tax payments are at least deductible to a certain point from your federal, and some state, income taxes. Up until recently values were increasing more rapidly than inflation and some folks were able to make a profit when they sold their homes.
What do you think?