Homeownership and renting in todays rollercoaster market
THe Washington Post reports that owning a home used to be cheaper than renting an apartment, but this has now changed. "Ten years ago, according to Moody's Economy.com, the average annual cost of owning a home -- including mortgages, taxes and maintenance costs -- was $10,231 nationally, compared with $13,090 for renting."
The Post later reports, " the average annual cost of owning a home was $17,707, compared with $15,721 for renting."
The Post said that this is due to several reasons, owners buying more house than they could afford, government organizations that aided homeowners loosing steam, and variable mortgages that are put under strain in our falling ecconomy. But, the Star Tribune has another reason why owning a home is getting more and more expensive.
In MN, the government created legislature in 2001 to help foster homeownership through cheaper taxes on homes. Now that the legislation is fading out, as it was intended to do before 2009, homeowners are paying more taxes on their homes as the values decrease in the bear market.
As reported by the Strib, "The city cited one home where the market value declined from $217,200 to $209,000, but the taxable value jumped from $189,300 to $209,000. "
It looks like the American Dream might become a penthouse appartment instead of the white picket fense. But, I think we'll still keep apple pie and baseball.