5 Reasons Why Homeownership Is a Good Financial Investment

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Real Estate Agent with REMAX Real Estate Experts 317824

5 Reasons Why Homeownership Is a Good Financial Investment | Keeping Current Matters

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.

Source: Keeping Current Matters /The KCM Crew 120116

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Rainmaker
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Pat Champion
Coldwell Banker Camelot Realty - Mount Dora, FL
Call the "CHAMPION" for all your real estate needs

Great post you are right owning a home does have great benefits for the home owner. Thanks for sharing I hope you have a great afternoon.

Dec 01, 2016 11:06 AM #1
Rainer
121,332
Shahar Hillel
Augusta Financial Inc. - Stevenson Ranch, CA
Mortgage Consultant, Loan Officer.

That rings true especially in Los Angeles and other areas of Southern California where rent prices have went up by a big margin.  Does it hold true to Tennessee? Probably.

Dec 01, 2016 11:27 AM #2
Rainmaker
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Michele Cadogan
Fillmore Real Estate Brooklyn New York - Brooklyn, NY
917-861-9166 - Brooklyn Real Estate Home Sales

Homeownership = building equity= force savings-  Now that a good benefit.  

Dec 01, 2016 11:32 AM #3
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Rainmaker
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Jennifer Carstensen

I specialize in selling houses (License: 317824)
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