The Cost of NOT Owning a Home
5 Financial Benefits of Homeownership
Owning a home has great financial benefits, yet many continue renting! Let’s take look at the financial reasons why owning a home may be a great choice for you.
Zillow recently reported:
“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 that renters currently paying the median rent in many markets could afford to buy a higher-quality property than the typical (read: median-valued) home without increasing their monthly expenses.”
What proof exists that owning is financially better than renting?
1. The most recent Rent Vs. Buy Report from Trulia gives us the top 5 financial benefits of homeownership:
- Mortgage payments can be fixed while rents can rise.
- Home equity can be a financial resource later.
- You can build wealth without paying capital gain.
- A mortgage helps by acting as a form of a forced savings account.
- Homeowners typically experience greater wealth growth than renters.
2. Studies have shown a homeowner’s net worth is 45x greater than that of a renter.
3. Just a few months ago, I explained a family buying an average priced home at the beginning of 2017 could build more than $42,000 in family wealth over the next 5 years.
4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter needs to know that all the expenses the landlord incurs are already baked into the rent payment –along with a profit margin!!
Real Estate Bottom Line
Owning a home may be a better financial option than renting. Let’s talk to discuss your particular situation to determine which is best for you.