Where we live, the type of home we choose to live in, and how we make that home our own are intimate, careful choices.  The home, for most of us, transcends the physical. Even the term "home" itself evokes a powerful positive emotional response. For most of us our home is much more than an investment.

It's time that we reconsider our homes for what they really are: places to live. Yes, appreciation potential and tax advantages are key components in determining if and when we choose to own a home. But, are they the most important factors? What about the old fashioned idea of owning a home that is right for you that carries with it pride of ownership and all of the underlying personal and emotional reasons for homeownership? In times like we've seen in the last few years, perhaps it is time that we re-balance our perspective on ownership.

Owning a home is far more than just owning an investment vehicle

Even with the experience we've had with home values of late, I am still surprised that so many people are willing to miss out on homeownership out of fear.  Certainly, many people cannot afford to own a home. I knowledge that there are many reasons for renting beyond the fear of the current market and I think many of those reasons are perfectly fine.

There are times when you should rent. But homeownership remains the single most important component in long-term economic stability and long-term value accumulation for most households in America. This holds true even after the decreasing values that we've experienced. In fact, who can deny that home values will eventually stabilize and began to head up once again?  It has already started to happen in many areas including in the Charleston home market.

Renting a home is only a substitute for homeownership in Charleston or anywhere. While it provides many of the benefits that come with home ownership, it still lacks the most important benefits – the essential intangible ones. Renting does provide you a place with a roof, walls and a floor.  It also allows you to defer some of the upfront investment costs you may experience with purchasing a home.  When you rent you can forgo many of the repair costs homeownership might entail.

Yes, there are reasons to rent; yet, when you rent you own nothing.  The pride of ownership belongs to your landlord.  The title belongs to your landlord.  The right to determine how long you live there and whether or not you have to move belongs to the landlord - even the choice of whether or not to own a pet belongs to the landlord.  The equity appreciation potential belongs to the landlord, too.  And, making that property your home rather than just a house or just a place to live, from an emotional standpoint, is elusive. For most of us, a rental property is not quite a home.

Even if the market were to remain completely flat forever, most people would still choose to own a home. But, we know that the market will appreciate eventually and may appreciate very quickly over a short period of years once we move into economic recovery.  Since we know that in most parts of the country, the decrease in home values appears to be near its end, making a purchase decision at this time has much less downside potential than in the last several years including the years of rapid appreciation we experienced that got us to this point. 

If you are considering renting a home and you are in a position to purchase a home, do yourself a big favor and list the reasons owning a home is important to you and your family (it should be a lengthy list). Next, balance those reasons against the fears you currently have about market conditions.  Ask yourself whether or not you feel home values will continue to decline.  Consider your timeline - that should be an important ingredient in the decision.  For example, if you plan to stay in your home for more than five years, what is the likelihood that your home will be worth more or be worth less when it's time to sell? What's the probability that ownership will be a poor decision for you? What’s the likelihood that renting will end up costing you more than buying? What are you giving up so you can stay out of the owners’ club?

Before you choose to rent a home rather than purchase, step back and think. Get past the unsettling emotions of the current market and think about the positive reasons for homeownership. Are you being driven by balanced consideration of the reasons for homeownership or are you being driven by fear? There is no question that purchasing a home requires careful financial consideration. But homeownership, having your own home, is the American dream that embodies so much more than the monetary investment. When you own the place that you call home, it becomes part of you and part of your family.