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Homeownership Is a Good Financial Investment!

Homeownership Is a Good Financial Investment!

According to a recent report by Trulia“buying is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.” The report may have some people thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective?

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 article listed five reasons why owning a home makes financial sense:

  1. Mortgage payments can be fixed while rents go up.
  2. Equity in your home can be a financial resource later.
  3. You can build wealth without paying capital gains.
  4. A mortgage can act as a forced savings account.
  5. Overall, homeowners can enjoy greater wealth growth than renters.

Bottom Line

Before you sign another lease, perhaps you should sit with a real estate professional in your area to better understand all your options.


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1 reply
  1. Troy Erickson
    Troy Erickson says:

    Buying a home can be a great investment over renting. Instead of paying your landlord so they can pay off their loan, you are paying into your own mortgage on a home that you can eventually own outright. In addition, if you buy at the right time, you can see your home’s equity build up rather quickly.

    Reply

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