Owning a home has great financial benefits, yet many continue to rent!
A home of your own has been a part of the American Dream for as long as America has existed. Let’s look at the financial reasons for owning a home.
Realtor.com recently reported the following.
“Buying remains the more attractive option in the long term. It remains the American dream, even markets where renting has become really the shortsighted option. As people get more savings in their pockets, buying becomes the better option.”
What proof exists that owning is financially better than renting?
1. In a previous blog we highlighted the top 5 financial benefits of homeownership:
- It is a form of forced savings.
- Provides tax savings.
- Homeownership allows you to lock in your monthly housing cost.
- Buying a home is cheaper than renting.
- No other investment lets you live inside of it.
2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.
3. A family that purchased an average-priced home at the beginning of 2018 could build more than $44,000 in family wealth over the next five years.
4. Some argue that renting eliminates the cost of taxes and home repairs. But every potential renter must realize something. All the expenses the landlord incurs are already baked into the rent payment– along with a profit margin!!
Bottom Line
From a financial standpoint, qwning a home is better than renting.