Home Ownership As A Financial Tool
According to a recent Trulia report, “buying is cheaper than renting in 100 of the largest metro areas by an average of 37.7%.”
In the report, Ralph McLaughlin, Trulia’s Chief Economist explains:
“Owning a home is one of the most common ways households build long-term wealth, as it acts like a forced savings account. Instead of paying your landlord, you can pay yourself in the long run through paying down a mortgage on a house.”
5 reasons why owning a home makes financial sense
- Mortgage payments (principal + interest) are fixed – rents can be increased.
- You can use the equity in your home as a financial resource.
- You can build wealth without paying capital gains.
- A mortgage can act as a forced savings account.
- Generally, homeowners enjoy greater wealth growth than renters.
Real Estate Bottom Line
Before signing another lease, let’s get together and discuss your options to see if buying a home makes sense for you.