Some homes are constructed by the owners with the intent to occupy. Many are inherited. A large number are purchased, as new homes from a real estate developer or as an existing home from a previous landlord or owner-occupier.
A house is usually the most expensive single purchase an individual or family makes, and often costs several times the annual household income. Given the high cost, most individuals do not have enough savings on hand to pay the entire amount outright. In developed countries, mortgage loans are available from financial institutions in return for interest. If the home owner fails to meet the agreed repayment schedule, a foreclosure (known as a repossession in some countries) may result.
Many countries offer aid to prospective homebuyers to make their purchases. These measures include grants, subsidized mortgages, and mortgage guarantees. Prospective homebuyers may have to meet certain qualifications to qualify for government aid, such as being a first-time homebuyer or having an income below a certain threshold.[1]
Pros and cons
Home ownership gives occupants the right to modify the building and land as they please (subject to government, homeowner association, and deed restrictions), protects them from eviction, and creates a right to occupation which can be inherited. In some jurisdictions, it also confers certain legal rights with regard to abutters.
Houses and the land they sit on are expensive, and the combination of monthly mortgage, insurance, maintenance and repairs, and property tax payments are sometimes greater than monthly rental costs. Buildings may also gain and lose substantial value due to real estate market fluctuations, and selling a property can take a long time, depending on market conditions. This can make home ownership more constraining if the homeowner intends to move at a future date. Some home owners see their purchase as an investment and intend to sell or to rent the property after renovating or letting the house appreciate in value (known as flipping if done quickly).
Compared to renters and absentee landlords, owner-occupiers are sometimes seen as more responsible toward property maintenance and community concerns, since they are more directly affected.[2]
Traditionally, home ownership has been encouraged by governments in Western countries (especially English-speaking countries) because it was thought to help people acquire wealth, to encourage savings, and promote civic engagement. However, the housing market crash of 2008 in most of the English-speaking world has caused academic and policy-makers to question this logic.[3]
Political influence
Owning a home influences how an individual views the role of government. Data from OECD countries shows that when housing prices rise, individuals are more critical of the welfare state. Conversely, when housing prices drop, homeowners are more likely to favor government intervention. In the US, areas with high rates of homeownership have higher levels of voter turnout. There is also a weak relationship between homeownership and supporting Republican candidates. Data from the UK supports the idea that homeowners view the value of their home as a kind of private, informal insurance policy against economic shocks. A sufficiently valuable home protects the owner without need for government intervention.[4]
International statistics
Percentage of owner-occupied units in urban areas, by country
Country
% Owner-Occupied Units in Urban Areas
Urban Population, % of Total
Argentina
67%
92%
Armenia
96%
64%
Australia
68%
89%
Azerbaijan
71%
52%
Brazil
74%
87%
Bulgaria
87%
73%
Canada
68%
81%
Chile
69%
89%
China
89%
45%
Colombia
50%
75%
Costa Rica
75%
94%
Czech Republic
47%
74%
Denmark
54%
87%
Egypt
37%
43%
France
47%
78%
Germany
43%
74%
Haiti
60%
48%
Hong Kong
53%
100%
Hungary
93%
68%
India
87%
30%
Indonesia
67%
54%
Italy
80%
68%
Kazakhstan
96%
-
Kenya
-
22%
Republic of Korea
56%
82%
Malawi
-
19%
Malaysia
-
72%
Mexico
71%
78%
Mongolia
-
58%
Morocco
62%
57%
Namibia
69%
35%
Netherlands
59%
83%
New Zealand
67%
87%
Nigeria
10%
50%
Norway
77%
78%
Pakistan
-
38%
Panama
66%
75%
Peru
-
72%
Philippines
80%
66%
Poland
78%
61%
Romania
97%
54%
Russia
81%
73%
Rwanda
-
19%
Senegal
-
43%
Singapore
87%
100%
South Africa
62%
62%
Spain
85%
77%
Sri Lanka
82%
15%
Sweden
41%
85%
Switzerland
40%
74%
Tanzania
-
26%
Thailand
75%
34%
Tunisia
78%
67%
Turkey
81%
70%
Uganda
-
13%
Ukraine
-
68%
United Kingdom
50%
90%
United States
65%
82%
Uruguay
59%
93%
Venezuela
83%
94%
Vietnam
-
28%
Zimbabwe
-
38%
Source: Housing Finance Information Network (HOFINET)[5]
Costs of home ownership
Property tax
Homeowners are usually required to pay property tax (or millage tax) periodically. The tax is levied by the governing authority of the jurisdiction in which the property is located; it may be paid to a national government, a federated state, a county or geographical region, or a municipality. Multiple jurisdictions may tax the same property.
Property Transfer Tax
In most Canadian provinces home purchasers must pay a one-time tax called a Property Transfer Tax (Land Transfer Tax) which is based on the cost of the home.
Kwak, Nancy H. A World of Homeowners: American Power and the Politics of Housing Aid ( University of Chicago Press, 2015). 328 pp.
External links
Home Ownership Rate by U.S. State – Aggregation of Federal Reserve economic data
March 03, 2023
owner, occupancy, home, ownership, form, housing, tenure, which, person, called, owner, occupier, owner, occupant, home, owner, owns, home, which, they, live, home, house, such, single, family, house, apartment, condominium, housing, cooperative, addition, pro. Owner occupancy or home ownership is a form of housing tenure in which a person called the owner occupier owner occupant or home owner owns the home in which they live The home can be a house such as a single family house an apartment condominium or a housing cooperative In addition to providing housing owner occupancy also functions as a real estate investment Contents 1 Acquisition 2 Pros and cons 3 Political influence 4 International statistics 5 Costs of home ownership 5 1 Property tax 5 2 Property Transfer Tax 6 See also 7 References 8 Further reading 9 External linksAcquisition EditSome homes are constructed by the owners with the intent to occupy Many are inherited A large number are purchased as new homes from a real estate developer or as an existing home from a previous landlord or owner occupier A house is usually the most expensive single purchase an individual or family makes and often costs several times the annual household income Given the high cost most individuals do not have enough savings on hand to pay the entire amount outright In developed countries mortgage loans are available from financial institutions in return for interest If the home owner fails to meet the agreed repayment schedule a foreclosure known as a repossession in some countries may result Many countries offer aid to prospective homebuyers to make their purchases These measures include grants subsidized mortgages and mortgage guarantees Prospective homebuyers may have to meet certain qualifications to qualify for government aid such as being a first time homebuyer or having an income below a certain threshold 1 Pros and cons EditHome ownership gives occupants the right to modify the building and land as they please subject to government homeowner association and deed restrictions protects them from eviction and creates a right to occupation which can be inherited In some jurisdictions it also confers certain legal rights with regard to abutters Houses and the land they sit on are expensive and the combination of monthly mortgage insurance maintenance and repairs and property tax payments are sometimes greater than monthly rental costs Buildings may also gain and lose substantial value due to real estate market fluctuations and selling a property can take a long time depending on market conditions This can make home ownership more constraining if the homeowner intends to move at a future date Some home owners see their purchase as an investment and intend to sell or to rent the property after renovating or letting the house appreciate in value known as flipping if done quickly Compared to renters and absentee landlords owner occupiers are sometimes seen as more responsible toward property maintenance and community concerns since they are more directly affected 2 Traditionally home ownership has been encouraged by governments in Western countries especially English speaking countries because it was thought to help people acquire wealth to encourage savings and promote civic engagement However the housing market crash of 2008 in most of the English speaking world has caused academic and policy makers to question this logic 3 Political influence EditOwning a home influences how an individual views the role of government Data from OECD countries shows that when housing prices rise individuals are more critical of the welfare state Conversely when housing prices drop homeowners are more likely to favor government intervention In the US areas with high rates of homeownership have higher levels of voter turnout There is also a weak relationship between homeownership and supporting Republican candidates Data from the UK supports the idea that homeowners view the value of their home as a kind of private informal insurance policy against economic shocks A sufficiently valuable home protects the owner without need for government intervention 4 International statistics Edit Percentage of owner occupied units in urban areas by country Country Owner Occupied Units in Urban Areas Urban Population of TotalArgentina 67 92 Armenia 96 64 Australia 68 89 Azerbaijan 71 52 Brazil 74 87 Bulgaria 87 73 Canada 68 81 Chile 69 89 China 89 45 Colombia 50 75 Costa Rica 75 94 Czech Republic 47 74 Denmark 54 87 Egypt 37 43 France 47 78 Germany 43 74 Haiti 60 48 Hong Kong 53 100 Hungary 93 68 India 87 30 Indonesia 67 54 Italy 80 68 Kazakhstan 96 Kenya 22 Republic of Korea 56 82 Malawi 19 Malaysia 72 Mexico 71 78 Mongolia 58 Morocco 62 57 Namibia 69 35 Netherlands 59 83 New Zealand 67 87 Nigeria 10 50 Norway 77 78 Pakistan 38 Panama 66 75 Peru 72 Philippines 80 66 Poland 78 61 Romania 97 54 Russia 81 73 Rwanda 19 Senegal 43 Singapore 87 100 South Africa 62 62 Spain 85 77 Sri Lanka 82 15 Sweden 41 85 Switzerland 40 74 Tanzania 26 Thailand 75 34 Tunisia 78 67 Turkey 81 70 Uganda 13 Ukraine 68 United Kingdom 50 90 United States 65 82 Uruguay 59 93 Venezuela 83 94 Vietnam 28 Zimbabwe 38 Source Housing Finance Information Network HOFINET 5 Costs of home ownership EditProperty tax Edit Homeowners are usually required to pay property tax or millage tax periodically The tax is levied by the governing authority of the jurisdiction in which the property is located it may be paid to a national government a federated state a county or geographical region or a municipality Multiple jurisdictions may tax the same property Property Transfer Tax Edit In most Canadian provinces home purchasers must pay a one time tax called a Property Transfer Tax Land Transfer Tax which is based on the cost of the home See also EditHome ownership in Australia Homeownership in the United States Imputed rent Negative equity Ownership Property List of countries by home ownership rateReferences Edit PUBLIC SPENDING ON FINANCIAL SUPPORT TO HOMEBUYERS PDF OECD 16 December 2019 Retrieved 21 September 2020 The Advantages of Renting Shelter or burden The Economist 2009 04 16 Ansell Ben W 2019 The Politics of Housing Annual Review of Political Science 22 165 185 doi 10 1146 annurev polisci 050317 071146 Housing Finance Information Network HOFINET Further reading EditKwak Nancy H A World of Homeowners American Power and the Politics of Housing Aid University of Chicago Press 2015 328 pp External links EditHome Ownership Rate by U S State Aggregation of Federal Reserve economic data Retrieved from https en wikipedia org w index php title Owner occupancy amp oldid 1138060301, wikipedia, wiki, book, books, library,
