5 Reasons Why Homeownership Is A Good Financial Investment By The KCM Crew On December 1 2016 In Fir

Dated: 12/01/2016

Views: 40

According to a recent report by Trulia, “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:

  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.



Blog by KCM Crew.

Michelle Light

I am a full time licensed Realtor. I specialize in representing my clients in the purchase and sale of single-family residences and income property within Fredericksburg. I truly love this area and pr....

Latest Blog Posts

Thinking Of Selling Act Now

If you thought about selling your house this year, now more than ever may be the time to do it! The inventory of homes for sale is well below historic norms and buyer demand is skyrocketing. We were

Read More

3 Tips For Buyers In Todays Market

In today’s highly competitive real estate market, where inventory levels are not keeping up with the constant stream of buyer demand, there are steps you can take to ensure you are most prepared

Read More

A Home Is A Good Financial Decision

According to the National Association of Realtors®’ 2017 National Housing Pulse Survey, 84% of Americans now believe that purchasing a home is a good financial decision. Since 2007 before the

Read More

Why No Two CMAs Are Alike

Whether you’re a buyer or seller, your agent will prepare a comparative market analysis(CMA) based on similar homes within a given search area, using size, age, features, condition and location,

Read More