Is home ownership overrated?

Is home ownership overrated?

Jul 26, 2023

What is your take on this?

Times are changing. During our generation of mostly employed individuals, we aspired to buy a car, then a house, usually timed when starting one’s own family. In my husband and my case, we were assisted by the benefits offered by our bank employers. We had car plans and subsidized housing loans. These days, ownership of cars and houses are no longer in the list of every young worker. Some would rather just rent and forego the headaches of ownership such as parking, maintenance, taxes, etc. The cost and other expenses that go with ownership have become so steep. Moreover, since workers move around more quickly now, financing benefits may not be as easily available and accessible as they used to be.

Ramit Sethi, Indian American millionaire who has a Netflix show titled How to Get Rich, said that his most controversial money opinion is that home ownership is overrated. He does not agree with the common belief that renting is throwing money as the rent goes to the landlord rather than it being invested in an asset. He rents and believes that people often do not take into consideration the other costs related to ownership such as homeowners’ dues, maintenance, taxes, etc. He advises people to just rent and invest their money in the stock market.

Prices of homes have increased exponentially. I started following this IG account called house_for_sale_ph and was surprised to see house prices today to be the cost of buying commercial buildings years ago! Home ownership has really become a pipe dream for a huge percentage of our population. And there is a danger of feeling inadequate just because you can’t afford to buy a house similar to what your parents could afford during their time. So, beware of this.

If home ownership is really important to you, then prioritize. If you can delay some of your trips, purchases of gadget, signature items, etc., do so and set aside the money for your home fund.

For me, home ownership is far from just being a mathematical exercise. There is something about ownership that cannot be quantified. Home is your sanctuary and for some people like myself, I would want to have that peace of mind that my sanctuary is my own, and no landlord can kick me out of it. I also know that because of the so-called Endowment Effect (our Emotional Emong side of assigning a greater value to something primarily because we own it), I will value and enjoy my abode more if I owned it. I will take better care of it, make it beautiful, and consequently, enjoy my stay in it more.

To each his own, so figure out what is important to you.

In our case, we purchased our lot after being married for three and a half years. The following year, we started constructing, then after another year, we moved in. That was in March 1995, after five and a half years in our two-bedroom apartment.

Since then, our house has had a few versions: 1.) The 1995 original version; 2.) Year 2000 Improvements; 3.) 2008 Extension; and the recent 4.) 2022 Empty Nest Version.

I received some requests for a house tour. I thought about it because it’s my nature to want share the lessons I learn from my life adventures, but maybe I should still connect it to what my focus is. I will be sharing mini tours of some parts of the house plus a discussion of the behavioral biases discussed in FQ Book 2 Why Financial Education Alone Does Not Work back-to-back withThe Psychology of Money. So, watch out for this series in FQ Mom You Tube account. If you want to know more about my take on real estate and home ownership, click “There can only be One Queen!” (The Story of our Big Investment Called Home) and What’s The Role of Real Estate in Your Portfolio?.

So, if you were to answer the question, “Is home ownership overrated?” what would it be? I do hope that when you figure out your personal take on this, you will go back to your core values. Because remember, the true purpose of all the money that we earn and the investments that we make is to fulfill our core values.


1. Watch our exciting video series titled House Tour + Behavioral Bias Series on July 28, 2023 in FQ Mom Youtube Channel.

2. Before you embark on your home purchase, check your FQ Score.

3. Get your copy of the FQ Books. Click here.

This article is also published in Philstar.