Deciding between buying or renting your next home? It’s true that home values have gone up quite a bit, but so have rents.
In fact, the largest landlord in the US, Invitation homes, said that rents have gone up 14% since last year.
And that’s not all – they forecast that rents will continue to go up about 6% annually
So, while it’s true that initially purchasing a home will be more expensive, your mortgage payment will remain relatively stable into the future. Whereas your rental payments will likely rise significantly in the years to come.
There are other amazing benefits that come with buying a home, including pride of ownership, more freedom in renovating and design, and of course building equity.
And because of increasing demand and tight supply, it looks as if home values will be well supported, and many are forecasting home prices to move higher.
I can give you a complete analysis with statistics for your specific zip code so you can make accurate comparisons and see which choice is best for you. Give me a call today to learn more.
If so, now is a great time to do it, as market conditions are quite good!
Homeownership has traditionally been an important way to build wealth and the financial returns on homeownership have been more far more beneficial than renting for most homeowners.
Your home is likely the biggest investment you will
make in your life, which brings with it some fear and anxiety. Don’t let
it! While home ownership may seem a bit scary, buying your home should be
an exciting time.
“Twenty years from now, you will be more disappointed by the things you didn’t do than by the ones you did do. So throw off the bowlines. Sail away from the safe harbor. Catch the trade winds in your sails. Explore. Dream. Discover.”
Why Home Ownership is Important
According to a Trulia report, “buying is cheaper than renting in 100 of the largest metro areas by an average of 37.7%.”
That may have some thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective?
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.”
The report listed five
reasons why owning a home makes financial sense:
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 gains.
A mortgage can act as a forced savings account.
Overall, homeowners can enjoy greater wealth growth than
87% of people said owning a home is part of their American dream
A typical homeowner’s net worth was $195,400 while a renter’s was $5,400
Academic studies have shown that homeowners are healthier. This result arises from a better sense of self-control and self-worth among homeowners versus renters
Owning a home is good for the economy. With each home sale there are expenditures related to lawn care, home remodeling, new furniture, mortgage origination, moving, and an inducement to build new homes
Homeownership benefits the homeowner’s family and their surrounding community. This includes improved health and school performance for children, increased civic engagement and volunteering, reduced crime, and higher lifetime wealth.
When taking a look at the
lessons learned from the last housing crisis, the Bipartisan Policy Center’s Housing Commission noted that homeownership can
“produce powerful economic, social, and civic benefits that serve the
individual homeowner, the larger community, and the nation.”
Thomas Eugene Bonetto
Mortgage Loan Originator
About The Coach
Tom Bonetto has been helping his customers and players achieve their best for nearly 30 years. His goal is to provide both a superior customer experience and tremendous value for both his business associates and his players alike.
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