The home market crash of 2008 had lasting effects on the economy of the United States. Many experts believe that the resulting credit crisis was the primary cause of the recession around 2009. The impact on millions of home owners was severe, and memories of the 2008 crash still influence attitudes to home ownership.

Rising property prices are generally considered a good thing for homeowners, but as 2008 proved this can bring the risk of a so called “housing bubble.” When the inevitable market correction comes, the consequences can be devastating for individuals. Foreclosure rates rise, credit becomes harder to obtain, and many homeowners struggle to meet repayments. Knock-on effects to the construction and other related industries can cause further pain and hardship.

Given the risks of a repeat of another market crash, why does it remain so many people’s dream to own a home? A decision to buy rather than rent may be driven by emotion, but it still stacks up financially in most cases. So long as you understand the risks of property prices falling and take advice from professionals when arranging a loan, owning a home has many benefits.

One of the positive things that’s emerged from difficult periods in the housing market is the range of lending options now available. A specialist financing company such as Gershman Mortgage in St. Louis is able to explore a variety of loan programs and advise on those most suitable for your personal circumstances. One of the risks of taking on a home loan is increasing interest rates pushing up repayments, but fixed rate mortgages can offer protection against this.

The decision to rent isn’t purely a financial one, and it suits the lifestyle and career path of some people. For example, if you need to relocate for work on a regular basis it’s much easier to switch to a new home if you are renting. Other advantages of not owning your home include not having to worry about the costs of maintenance and insurance. There are downsides to renting too of course, including the fact that rents can increase when your lease comes to an end.

Although the market crash of 2008 delivered some hard lessons, the appeal of home ownership remains strong. By taking a more selective approach to lending, finance providers have been able to improve confidence and stability in the market. Building equity over the long term means a property is an investment as well as a home.