Owning a home has great financial benefits. Because of this, more and more experts are growing concerned about the ramifications of a falling homeownership rate. 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.The outcomes of a falling homeownership rate can be devastating. As explained by ApartmentList.com:"Our research indicates that not owning a home has a sizable financial cost, as renters miss out on low mortgage rates and are hit by higher rents.This phenomenon may exacerbate inequality in our society, as those wealthy enough to invest in real estate benefit from lower interest rates, whereas minorities and younger Americans, hit by rising rents and student debt, risk being locked out of homeownership."What proof exists that owning is financially better than renting?1. A study published by the Joint Center of Housing Studies at Harvard University shows the financial benefits of homeownership. The study mentions five major financial benefits:Housing is typically the one leveraged investment availableYou're paying for housing whether you own or rentOwning is usually a form of "forced savings"There are substantial tax benefits to owningOwning is a hedge against inflation2. Studies have shown that homeowners have a net worth that is 45X greater than that of a renter.3. Just last month, we explained that a family buying an average priced home this past January could build more than $46,000 in family wealth over the next five years.4. Some argue that renting eliminates the cost of taxes and home repairs. Every potential renter must realize that all the expenses the landlord incurs are baked into the rent payment already - along with a profit margin!!Bottom LineOwning 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: September 15th 2016 Views: 254 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.