Kandahar

Putting aside the current mortgage crisis, do you think the government should generally be encouraging home ownership? Homeowners are able to deduct their mortgage interest from federal taxes. They typically don't pay any taxes on profits from selling their homes (or if they do, it's taxed at the lower capital gains rate). Government entities help people get mortgages at very low rates, and there are even special programs to assist first-time home buyers.

Personally I don't see WHY we need all these programs and deductions. Why is home ownership an inherently good thing that should not only be encouraged, but subsidized by the government? Not everyone should own a home. Some people are better off renting. Personally I find it appalling when people talk about "throwing your money away on rent." It's often a much better idea than buying a home.

What are your thoughts?

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new coup for you

people owning their own homes prevents the kind of rampant class division and bitterness seen in Europe. a static class of property owners to whom much of society are beholden offend most people...and cause things like revolutionary socialism.

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Kandahar

OK, but we can encourage the growth of the poor and middle-class in other, less destructive ways. We could expand the EITC, or abolish payroll taxes and shift the burden to income taxes, or make the income tax more progressive, or expand health care coverage. Those steps would help the same people you're referring to, and would actually be GOOD for the economy.

Subsidizing homeownership just creates one more gross economic inefficiency IMO.

I disagree. There are a lot of people who rent and who don't mind renting. Personally I prefer renting, although I could afford a house if I wanted one. I like the idea of being able to pick up and move anywhere in the country I want with only a few months' notice, and I like not having to worry about maintenance.

new coup for you

dude renting makes no financial sense at all.

In thirty years If I rent, I get my house. In 30 years you may have spent less, but you're left with nothing.

Be able to have someone else fix your pipes every once in awhile just doesn't compare to possibly doubling or even tripling your investment.

Ethereal

Yea...dude!

SuperDem

I voted yes. When people have a stake in a piece of property where hopefully they raise their families and do their own thing, I think it brings a soundness and a "common sense" to an otherwise transient society. Now transient is a dingy word. But think about the old cliche's about putting down roots and a tumble weed never being able to acquire anything.
We don't have to live in the same town from cradle to grave as in bygone days. But having a roof you can say is 'mine' gives a feeling IMO of responsibility.
Another reason is your landlord can die tomorrow and his kids inherit the property and choose to sell it to some crappy management company. When your lease is up they might raise the rent because they want to put their brother-in-law in there. It's not your home, so you move on.
Even if all you have is a retirement lot on a river somewhere, property ownership helps your credit rating (really, really), and gives you the sense you are invested in something that is not going to be consumed, and will over long term only appreciate.

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Sly

While owning a home can be a good investment in a stable economy, it takes, as Kandahar suggests, a certain amount of personal freedom away. From the day you sign the papers until the day it's paid off, you're a slave to the investment. You also need to pay propert taxes, insurance, and maintenance. When people say they own a home they seldom do. It's the banks, or the town you pay property tax.

RightinNYC

The problem with simply increasing the EITC or reducing payroll taxes instead of helping people buy houses is that they're a lot more likely to use that help to go out and buy cigarettes or a new plasma.

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tlmorg02

I voted yes, because homeownership is about more than owning a roof. It encourages community and social responsibility. Owning a home provides the basis for growing longterm wealth and has forever been a major part of the American dream. I cannot imagine the U.S. having a system like that of Europe where people must qualify with the government before they even have the option of buying a home.

If renting is your thing, great and kudos. But by promoting homeownership the government is investing in its future and the future of its citizens.

Gabby

There's no doubt that renting is throwing your money away. How can you possibly argue otherwise? You're listing some benefits to renting - being able to move when you want, assuming you aren't tied into a lease. That doesn't negate the disappearing money with nothing to show for it.