Renting Vs. Owning

It’s the Right Time, Right Market to stop paying rent and instead become a homeowner!

Owning your a home is at the cornerstone of the American Dream.  It is a great achievement for millions and the foundation on which to build a future.  For those both financially and emotionally ready to own your own home, homeownership is one of the best decisions you will make.

Buying your first home can be an intimidating process.  You may be thinking you can’t afford to buy a home or whether it is a good investment. The reality is that homeownership provides shelter and security to families and individuals, and has historically proven itself as an excellent long-term investment, both in terms of building equity and offering money saving tax benefits.

Unlike with rent payments, your fixed-mortgage payments don’t rise over the years so your housing costs may actually decline as you own your home longer.

According to the most recent Federal Reserve Survey of Consumer Finances, the median net wealth of a renter household is $4,800, while the median net wealth of a homeowner household is $171,700.  Clearly, owning a home is the best way to build a nest egg.

Homeowners use their home equity to get cash for emergencies as well as for the purchase of big ticket items, and have more confidence in housing wealth gains than stock market gains that can be quite volatile.  In addition, the capital gains that owners realize from the sale of their home are a significant source of down payment funds for most repeat buyers.

Plus, when you own a home you have freedom you could never have renting.  Anything you want to change about your living space is something that you will have until you sell your home—so if you’d rather have hardwood than carpet, you can do that!  Your property is your property and no one else’s, so you can do what you like with the paint colors, door handles, kitchen cabinets, floors…you name it.  Plus, homes give you more space for your money—more room for kids, pets and hobbies.

The social benefits of homeownership are also encouraging.  Homeowners move less frequently than renters, providing more neighborhood stability.  They’re also motivated to stay abreast of local issues to protect their investment. In turn, involvement in community quality of life issues helps prevent crime, improve childhood education and support neighborhood upkeep.  Studies also show that homeowners are more likely to vote and volunteer time for political and charitable causes.

Economic and social benefits are why Western democratic governments have frequently designed policies to promote homeownership.  In fact, the U.S. government has encouraged homeownership since the inception of the U.S. tax code, including incentives such as the mortgage interest deduction.

Contact a REALTOR® today and learn why this is the Right Time, Right Market for renters!