Nooshi Naderi | 5 Reasons Why Homeownership Is a Good Financial Investment
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5 Reasons Why Homeownership Is a Good Financial Investment

Posted by NooshiAdmin in Blog 02 Dec 2016

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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:

– 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 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.

Source: KCM.com