Rent or Buy: Factor in Stigma

Currently the economics of keeping a roof over your head tilts toward renting versus home ownership. Yahoo Finance documents:

"An analysis from Zillow and Thumbtack estimated hidden costs alone have climbed to nearly $16,000 a year on average, or an additional $1,325 a month on top of a mortgage ... CBRE calculates ... the monthly costs of a mortgage payment, taxes, insurance, and maintenance are more than double the cost of renting, on average."

An added incentive to renting is that in a growing number of cities rents are coming down because of apartment over-building. There are even promos in which free rent for a month or more is part of the deal.

But the wrench in the works, at least for those generations socialized to being concerned about status, is the stigma associated with the negative perception that "you aren't able to own your own home." That reflects what research proved out: Ownership of whatever is rated higher than renting whatevers.

We boomers who sold our houses during one of the booms and decided not to get into that financial state of affairs again (the new roof needed) are often in this humiliating pickle: We have some explaining to do why we don't own. 

In exchange, though, we usually have the funds to invest in equities and bonds. That would have been the reserve in checking accounts for home maintenance. 

In addition, we have geographic flexibility. When the New York Metro area began to become unaffordable in 2014, because I was renting, I had the option to easily relocate my boutique to a LCOL (low cost of living) area in the Southwest. When the latter stopped being so affordable, recently I relocated to the Midwest, without a lot of agita. 

In career coaching I hammer the importance of flexibility as the law of supply and demand changes abruptly. 

 Thrown off your game, maybe the first time since you started working? You made all the right moves and then the world moved in another direction.

Intuitive Coaching. Special expertise with transitions, reskilling and aging. Psychic/tarot readings, upon request. Complimentary consultation with Jane Genova (Text 203-468-8579, janegenova374@gmail.com). Yes, test out the chemistry. Zero risk.