Affordable Housing

Affordable housing depends on many factors. One of the factors is having a good job. By a good job, I mean one that pays a reasonable living wage. Another factor in affordable housing is geographic location.

When I write about affordable housing, I’m talking about housing for people who are finished with high school. These are adults. If people are under 18 years old, they are probably living with their parents or guardians. Not every job required a college degree. Actually, I would argue that most jobs do not require a college degree. Given this, housing should be affordable to those with only a high school diploma.

No, I’m not saying that everyone should be able to afford a mansion. However, I am saying that everyone should be able to have a mortgage and own. After all, home-ownership is part of the American dream. However, certain geographic locations make that very difficult.

Three of the most expensive areas are New York City, parts of California, and Northern Virginia. In these areas, rent and mortgages are very high priced. As a matter of fact, these places have homes which are prices three times the national average! This is good news and bad news. The good news is that the jobs in these areas tend to pay more money. This means that, if a person is saving for retirement, they will likely have a bit more retirement money. When the person is ready to return, they can simply move to a low price area to afford a much larger home.

Most of the country has homes in the $200,000 price range. This should be affordable to the person who has been out of high school for a few years. They have a few years of experience and hopefully have saved up some money. Then, they can begin to live parts of the American dream.

The Price Rises

The price of real estate generally rises over time. This is both a good and bad thing. It’s actually a good thing and bad thing for different people.

It’s bad for people who rent. This is because their rent will continue to increase. Renter has no equity. If a renter lives in the same place for 10 years they cannot sell it at the end. They simply move on.

Rises home prices are good for those who own homes and have a mortgage. If a homeowner lives in the same place for 10 years they can sell it after. But there’s a difference with the owner. They are going to get paid! And they are probably going to get a paid a lot. We might be talking tens of thousands of dollar here or more.

The only negative thing about being a homeowner is taxes. Over time, property taxes increase. However, the tax increase is far outdone by the money the homeowner will keep from owning property. The great thing about property taxes, if there was ever a great thing about taxes, is that property taxes are tax deductible. That’s great! Another part of deducting home expenses is even more important. The interest on a mortgage is tax deductible. That means the homeowner might be saving thousands of dollars each year by owning instead of renting!

Home ownership is part of the American dream. However, most people don’t start out that way. I rented for years before I became a homeowner. Many people share the same path me. And that’s alright. The important part is to strive and have a goal towards ownership. This will pay off most of all in retirement. Imagine not having a rent or mortgage payment. That’s my personal goal! I want to spend my extra money traveling, not paying rent!