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. AsexplainedbyApartmentList.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. Astudypublished by theJoint Center of Housing Studies at Harvard Universityshows the financial benefits of homeownership.The study mentions five major financial benefits:
Housing is typically the one leveraged investment available
You're paying for housing whether you own or rent
Owning is usually a form of “forced savings”
There are substantial tax benefits to owning
Owning is a hedge against inflation
2. Studieshave shown that homeowners have a net worth that is 45X greater than that of a renter.
3. Just last month, weexplainedthat 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 andhome 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!!
Owning a home has always been, and will always be better from a financial standpoint than renting.
Author:Bonnie Lelak Phone: 404-788-2580 Dated: December 6th 2016 Views: 58 About Bonnie: Experience with regular home sales, short sales, foreclosures, HUD homes, no down payment program ho...
As a Realtor I have been able to use many of the skills that I have learned from my previous experiences. I spent the past 10 years owning a home inspection company with my husband and watched as buyers would find a home and then have it inspected and be disappointed with the findings. I love being able to help buyers from the start of the process. As a buyers specialist I can help clients look at homes with a different eye, always looking for tings that the home inspector will find issues with and helping my clients see possible issues before going under contract, saving them time, money and heart ache. Servicing all levels of buyers, from the first time home buyers to the luxury buyers. The finishing touch is being able to provide them with tools that can help them pay off their home in less than half the time. Helping buyers find their dream home is very rewarding.
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Home values have risen dramatically over the last twelve months. The l
"Bonnie Lelak was so professional, attentive, and very eager to help me find a home that was just perfect for my family. I recommend her to anyone looking for a home. She was very easy to contact, always got back to me immediately and really showed care and concern for my family."