THE VALUE OF HOME RENTING VERSUS OWNERSHIP Over the last number of years, our governments have done everything to encourage home ownership. The presumption was that it was considered an act of responsible citizenship. Mortgage tax deductions, low and no down payments, and then finally sub-prime mortgages all served only to encourage people to borrow more and therefore normalize debt in our country. As the wreckage of the recent economic tsunami receded, it revealed the clear consequence of all those homes bought by Americans who just couldn’t afford them. And the consequence was to cause major disruption in families’ lives and virtually the need for those families to start all over again. Yet the banks feel no guilt, remorse or sympathy with the havoc they caused to American families. Home ownership is not for everyone. A family’s priority should be to establish a base on which to build a good life and to sustain the family. The debt load of home ownership usually occurs during the same time that resources are needed to raise the children, educate them and presumably provide them with at least equal if not better opportunities than we had. Also these resources can allow the couple to enjoy the fruits of their labor during their years of best fitness and health. Yet we compromise all that by taking on the burden of home ownership where our first priority becomes all the costs associated with the home ( Mortgage payments, taxes, maintenance) and the constant overview of our whole economic life by the bank. Home rental has traditionally held a lower status in North America, but experts say prejudice against renting is misplaced. Yale economist Robert Shiller points out that Switzerland is a country of renters and is a very successful and stable society. Families tend to travel more, be better educated and generally seem to lead less stressful lives. Home rental during the family years provides better means for the average income earner to provide an improved lifestyle for themselves and their children. Whether its lifestyle generally, opportunities to see the world with the kids on vacations or providing for better education, the satisfaction of having more freedom to provide all these options changes both the dynamics of family life and the outcome when the children leave the “nest”. Gervick Homestead’s only business is the rental of family homes to both families and retirees. The company was formed to purchase and provide family style homes on a long term basis. Gervick Homestead offers the renter the opportunity to enjoy all the amenities of home ownership without the responsibility and financial burden of debt, and frees the family or retirees to invest a greater portion of their earnings and time in their lifestyle. Answering to a Landlord can be far better and more personable than answering to a bank.

© Copyright 2011 Gervick Homestead Corperation. All Rights Reserved