MarketWatch: Many believe homeownership is no longer a way to build wealth: survey

[marmar]

Leaving home
Many believe homeownership is no longer a way to build wealth: survey

By Amy Hoak, MarketWatch


CHICAGO (MarketWatch) -- Nearly half of American adults who participated in a recent survey said they no longer believe that homeownership is a realistic way to build wealth, the National Foundation for Credit Counseling reported on Monday.

The findings, from a recent survey of about 1,000 people, run counter to the long-held perception that a home should be part of a person's financial strategy, the NFCC said.

"It had been considered the cornerstone of wealth building," said Gail Cunningham, spokeswoman for the NFCC. Homeownership had been a significant tool that most people felt was necessary to prepare for retirement, she said in a phone interview.

The survey was conducted because the organization was curious about future implications of living through the mortgage meltdown, she said. Whether consumers reflect on their own experience or are just "observing the guy in the cubicle next door," conditions have caused many people to change their attitudes about housing, she said.

For now, anyway. According to an annual survey from the NFCC released earlier this year, 57% of adults reported that they were spending less than they were a year ago, Cunningham said. But 45% of those who were spending less said that if their financial situation improved, they would resume their spending habits. ..........(more)

The complete piece is at: http://www.marketwatch.com/story/many-say-homeownership-no-longer-a-path-to-wealth

[theoldman]

1. Home ownership is not a fast way to build wealth.

It takes many years and works best if you buy when the housing market is low. People were spoiled during the last few years. The same thing happened in the seventies. The bottom line is that the value of a house goes up most of the time. A lot depends on where you buy the house. If you buy a house in the poor area of a city you may end up losing money.