He makes 100 grand/yr and he is not ready to be a homeowner?
Mark Whitehouse writes about the advantages of renting in the WSJ: American Dream: Default, Then Rent
Mark Whitehouse describes one former homeowner with a monthly income of $8,300. He was paying $4,800 a month on his home and he was basically working to pay his mortgage. He was really a “debt owner” since the home was worth far less than the amount owed. He walked away from his mortgage, now rents a similar home for $2,200 a month and is enjoying life:
He now has the wherewithal to do things he couldn’t when he was stretching to pay the mortgage. He recently went to concerts by Rob Thomas and Mat Kearney. He also kept his black BMW 6 Series coupe, which has payments of about $700 a month……… lives on the 3100 block of Club Rancho Drive in Palmdale, where a terrible housing market lets them rent luxurious homes — one with a pool for the kids, the other with a golf-course view — for a fraction of their former monthly payments.
“I don’t know if I’ll buy another house again, because it’s such a huge headache,” he says.
As one blog writer wrote: “This is one of the tragedies of the housing bubble – it encouraged people to become homeowners before they were really ready and also encouraged them to buy too much home. Many of these people will not buy again for years, if ever”.
Interesting WSJ article. What are your thoughts?
File Under: The New American Dream…Of Luxury Living.
