Owning a home has great financial benefits, yet many continue renting! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.
“With Rents continuing to climb and interest rates staying low, many renters find themselves gazing over the homeownership fence and wondering if the grass really is greener. Leaving aside, for the moment, the difficulties of saving for a down payment, let’s focus on the monthly expenses of owning a home: it turns out thatrenters currently paying the median rent in many markets could afford to buy a higher-quality propertythan the typical (read: median-valued) homewithout increasing their monthly expenses.”
What proof exists that owning is financially better than renting?
1. ThelatestRent Vs. Buy ReportfromTruliapointed out the top 5 financial benefits of homeownership:
Mortgage payments can be fixed while rents go up.
Equity in your home can be a financial resource later.
You can build wealth without paying capital gain.
A mortgage can act as a forced savings account
Overall, homeowners can enjoy greater wealth growth than renters.
2.Studieshave shown that a homeowner’s net worth is 45x greater than that of a renter.
3. Just a few months ago, weexplainedthat a family buying an average priced home at the beginning of 2017 could build more than $42,000 in family wealth over the next five years.
4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into therent payment–along with a profit margin!!
Owning a home has always been, and will always be, better from a financial standpoint than renting.
Author:Heather F Davidson Phone: 609-209-7581 Dated: May 15th 2017 Views: 133 About Heather: I'm an agent whose business is built on the promise of exceptional customer service. If you are sel...
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Specialties: Buyer's Agent, Listing Agent, Relocation, Short-Sale
I'm an agent whose business is built on the promise of exceptional customer service. If you are selling your home or searching for that special place to call your own, you deserve to work with someone you trust-someone who you know has your best interests in mind. Whatever your particular Real Estate need, I'll work hard to make sure that you are completely satisfied. I have the knowledge, experience, and dedication that it takes to get results.
We hope 2018 is a great year for you, both personally and
"Heather made our first home-buying experience a breeze. It only took one conversation for her to really understand what it was we were looking for, and she did everything she could to make sure we found it. Along the way, she gave us invaluable advice, and made sure that we understood all of our options every step of the way. I can't imagine how much more stressful it would have been without her insights, empathy, and sense of humor. It was because of all this that we are happily in our dream home now today. I will absolutely be referring her to anyone I know who is looking to buy a home in NJ"