Tuesday, March 13, 2012

Why owning a house may not be the American Dream

Lots of societies outside of America seem to have a preference for home-ownership. I have spoken to policy makers and scholars in several countries--India, Bangladesh, South Africa, Peru--about the importance of a well functioning rental sector.  Rental housing allows for mobility, and for people to use savings to invest in such things as small businesses.  Rental housing is also a way for small entrepreneurs to earn a return on investment.

Yet everywhere I go, I am told that people don't want to rent, they want to own.  The principal reason seems to be security of tenure; in places where enforcement of contracts remains an issue, fear of abuse by landlords sours people on renting as an option.  And so it is that people want to be owners.

Many countries in Western Europe--Germany and Switzerland in particular--do not have fetishes about homeownership.  But tenant protections in these countries are strong (see this piece on Germany and this piece on security of tenure beyond lease terms in Switzerland), so renting is sort of "owning-light" in these countries.  

2 comments:

Bert Slater said...

As an American citizen, I really prefer owning than renting. Much of bucks is wasted if you'll just rent all over your entire life.

turesta, said...

The size of an apartment or house can be istanbul real estate described in
square feet or meters. In the United States, this includes the area of "living space", excluding the garage and
other istanbul property non-living spaces. The "square meters" figure of a
house in Europe may report the total area of istanbul properties the walls
enclosing the home, thus including any attached garage and non-living spaces, which makes it important to inquire what kind of surface
definition has been istanbul real estate used.

It can be described more roughly istanbul real estate
the number of rooms. A studio apartment has a single bedroom with istanbul real estate
no living room (possibly a separate kitchen). A one-bedroom apartment for sale in istanbul
apartment has a living or dining room separate house for sale in istanbul
from the bedroom. Two bedroom, istanbul villa three bedroom, and larger
units are common. (A bedroom is defined as a room with a closet for istanbul villa clothes storage.)

In recent years, property for sale in turkey many
economists have recognized that the lack of property for sale in istanbul
effective real estate property for sale in istanbul
laws can be a significant barrier to investment in many developing countries.
In most societies, land for sale in istanbul rich and
poor, a significant fraction of the total land for sale in turkey
wealth is in the form of land and buildings.