Stina Fish regularly dines at upscale restaurants, dabbles in the stock market and has vacationed internationally twice in the past year--and she plans to tour China later this month.
With an MBA under her belt, the 33-year-old Loop resident clearly knows how to handle money, yet there is one traditional investment she refuses to make: Fish can't bring herself to buy a home.
"Since college, I've thought that Americans are generally obsessed with the idea of homeownership being some kind of superior lifestyle, but I think we get more for our money renting," said Fish, a manager of development in the public transportation industry.
Although the conventional wisdom for money management and responsible adulthood dictates buying a home, recent research shows fewer Americans are making the leap to ownership.
Economic troubles have played a major role in the nation's real estate slump, but there also is a sizable portion of renters who say they have no intention of purchasing a house, citing rental advantages such as mobility and monthly savings.
The number of households that are renting grew by 3.4 million from 2004-2009, a 10 percent increase, according to a 2010 report by the Joint Center for Housing Studies at Harvard University.
Some of those renters are there to stay. More than a quarter of renters never plan to buy a home, according to a national survey conducted this summer for trulia.com, a real estate search engine. Of the renters who said they do plan to purchase someday, 68 percent said it would be more than two years before they do so.
Fish says she has the financial means to purchase a home, but she prefers the convenience of renting the loft apartment she shares with her husband.
The space includes many of the perks often associated with homeownership--in-unit laundry, a covered parking space, pet-friendly building rules and a view of the Chicago River. (Fish did not want to reveal what she pays for rent, but she said it is less than a mortgage for a comparable space.)
"We don't worry about special assessments. We don't worry about having to replace the dishwasher or the furnace," Fish said. "Even though I've been in the same apartment since 2003, there's still the idea that I'm free to pick up and move anywhere, at any time."
Recent economic reports suggest even more people may be moving toward renting.
Sales of existing homes in Chicago fell 25.1 percent year-over-year in July, according to data released by the Illinois Association of Realtors. And that beats the national drop of 27.1 percent to reach the lowest level since the National Association of Realtors started tracking sales of single-family homes and condos in 1999, the Tribune reported.
The dip was expected after the expiration of a government tax rebate program, said Bob Ghislandi, an associate broker with real estate company @properties.
"We're seeing a void, which makes sense," he said. "We all expected this. But anyone who buys right now is getting an incredible deal."
Among the Chicago first-time home buyers who never looked back is Travis Linz, a senior sales representative who bought a two-bedroom penthouse condo in March in Ukrainian Village. After sitting on the sidelines for a couple of years, Linz said he was glad to finally negotiate a great price for a great place.
"Interest rates were low and it seemed like we might be coming out of the recession, so I didn't want to miss the window," said Linz, 30. "I wanted something unique and I found it."
Renting had its pluses, Linz conceded, but he prefers the ownership lifestyle.
"When I rented, it was great to know I could pack everything I own in an SUV and skip town should I decide to," he said. "But I also have had a few awful landlords over the years, and I don't miss dealing with them."
Thiyag Chinnappan, a 35-year-old marketing analyst, said he considered buying a home about two years ago, but the uncertain job market strongly influenced his decision to rent. So far, he has no regrets.
"Owning a place adds the burden of immobility," said Chinnappan, who says renting the four-bedroom Roscoe Village house he shares with three others has given him the opportunity to beef up his savings and travel around the world. "[I can] save more liquid cash and make other investments instead of tying it down to a house."
Owning a home wouldn't make Chinnappan feel any more mature or grown up, he said.
"It's a very personal decision," he said "This just fits my lifestyle better."
--ERIN M. SARRIS IS A REDEYE SPECIAL CONTRIBUTOR. --
With an MBA under her belt, the 33-year-old Loop resident clearly knows how to handle money, yet there is one traditional investment she refuses to make: Fish can't bring herself to buy a home.
"Since college, I've thought that Americans are generally obsessed with the idea of homeownership being some kind of superior lifestyle, but I think we get more for our money renting," said Fish, a manager of development in the public transportation industry.
Although the conventional wisdom for money management and responsible adulthood dictates buying a home, recent research shows fewer Americans are making the leap to ownership.
Economic troubles have played a major role in the nation's real estate slump, but there also is a sizable portion of renters who say they have no intention of purchasing a house, citing rental advantages such as mobility and monthly savings.
The number of households that are renting grew by 3.4 million from 2004-2009, a 10 percent increase, according to a 2010 report by the Joint Center for Housing Studies at Harvard University.
Some of those renters are there to stay. More than a quarter of renters never plan to buy a home, according to a national survey conducted this summer for trulia.com, a real estate search engine. Of the renters who said they do plan to purchase someday, 68 percent said it would be more than two years before they do so.
Fish says she has the financial means to purchase a home, but she prefers the convenience of renting the loft apartment she shares with her husband.
The space includes many of the perks often associated with homeownership--in-unit laundry, a covered parking space, pet-friendly building rules and a view of the Chicago River. (Fish did not want to reveal what she pays for rent, but she said it is less than a mortgage for a comparable space.)
"We don't worry about special assessments. We don't worry about having to replace the dishwasher or the furnace," Fish said. "Even though I've been in the same apartment since 2003, there's still the idea that I'm free to pick up and move anywhere, at any time."
Recent economic reports suggest even more people may be moving toward renting.
Sales of existing homes in Chicago fell 25.1 percent year-over-year in July, according to data released by the Illinois Association of Realtors. And that beats the national drop of 27.1 percent to reach the lowest level since the National Association of Realtors started tracking sales of single-family homes and condos in 1999, the Tribune reported.
The dip was expected after the expiration of a government tax rebate program, said Bob Ghislandi, an associate broker with real estate company @properties.
"We're seeing a void, which makes sense," he said. "We all expected this. But anyone who buys right now is getting an incredible deal."
Among the Chicago first-time home buyers who never looked back is Travis Linz, a senior sales representative who bought a two-bedroom penthouse condo in March in Ukrainian Village. After sitting on the sidelines for a couple of years, Linz said he was glad to finally negotiate a great price for a great place.
"Interest rates were low and it seemed like we might be coming out of the recession, so I didn't want to miss the window," said Linz, 30. "I wanted something unique and I found it."
Renting had its pluses, Linz conceded, but he prefers the ownership lifestyle.
"When I rented, it was great to know I could pack everything I own in an SUV and skip town should I decide to," he said. "But I also have had a few awful landlords over the years, and I don't miss dealing with them."
Thiyag Chinnappan, a 35-year-old marketing analyst, said he considered buying a home about two years ago, but the uncertain job market strongly influenced his decision to rent. So far, he has no regrets.
"Owning a place adds the burden of immobility," said Chinnappan, who says renting the four-bedroom Roscoe Village house he shares with three others has given him the opportunity to beef up his savings and travel around the world. "[I can] save more liquid cash and make other investments instead of tying it down to a house."
Owning a home wouldn't make Chinnappan feel any more mature or grown up, he said.
"It's a very personal decision," he said "This just fits my lifestyle better."
--ERIN M. SARRIS IS A REDEYE SPECIAL CONTRIBUTOR. --
Before you purchase
How do you know when it's time to evict the landlord from your life? Neil Moscicki, a vice president and financial adviser with Harris Investor Services in suburban Roselle, shared five things a renter should have (left) before considering homeownership. E.S.
Breaking down the trade-offs
If there's one truth about taking the plunge into homeownership, it's that there always are two sides to consider. Is owning better than renting? That's up to the individual, but here are some issues to consider. E.S.
Maintenance
Owners: Your water pipe burst at 2 a.m.? That's gonna cost some money, but you've got your pick of plumbers.
Renters: This is the landlord's problem, but scheduling the repair might not be his first priority of the day--or week.
Decor
Owners: Pimp your space any way you'd like.
Renters: Who wants to spend weekends at Home Depot?
Payments
Owners: Added costs--taxes, insurance and special assessments--are part of the American dream, but so is the tax write-off.
Renters: No surprises--a single monthly check with a consistent payment.
Renters: No surprises--a single monthly check with a consistent payment.
Longevity
Owners: As long as your mortgage payments are on time, no one can kick you out of your space.
Renters: Rent increases loom large every year, but many landlords will give price breaks for signing a longer lease.
Renters: Rent increases loom large every year, but many landlords will give price breaks for signing a longer lease.
By Erin M. Sarris
