There have been some who have voiced doubt as
to whether or not the younger generations still consider buying a home as being
part of the “American Dream”. A recent study
by Merrill Lynch puts that doubt to rest. According to their research,
every living generation still maintains that owning a home is in fact
important. Here are the numbers:
This should not surprise us as many studies have
revealed the benefits enjoyed by the families who own their own home. One such study was done by the Joint
Center of Housing Studies at Harvard University that addressed a major
financial benefit to owning your own home: forced savings.
The report explains: “Since
many people have trouble saving and have to make a housing payment one way or
the other, owning a home can overcome people’s tendency to defer savings to
another day.”
The Merrill Lynch study proves this point
with the following data on home equity (a form of savings):
Bottom
Line
There are many reasons that owning a home makes
sense. The financial reasons are powerful. As one participant in the Merrill
Lynch study put it:
“When I
was younger, I always worried about that monthly mortgage payment. Now that I
am retired, I have the peace of mind of knowing I own my home free and clear.”
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