The Cost of RENTING-Do You Know the Cost of NOT Owning Your Home?

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Real Estate Agent with Allison James Elite CA. BRE 01501699
http://activerain.com/droplet/54yG
Do You Know the Cost of NOT Owning Your Home? | MyKCM

Owning a home has great financial benefits, yet many continue renting! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.

Zillow recently reported that:

“With Rents continuing to climb and interest rates staying low, many renters find themselves gazing over the homeownership fence and wondering if the grass really is greener. Leaving aside, for the moment, the difficulties of saving for a down payment, let’s focus on the monthly expenses of owning a home: it turns out that renters currently paying the median rent in many markets could afford to buy a higher-quality property than the typical (read: median-valued) home without increasing their monthly expenses.”

What proof exists that owning is financially better than renting?

1. The latest Rent Vs. Buy Report from Trulia pointed out the top 5 financial benefits of homeownership:

  • 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 gain.
  • A mortgage can act as a forced savings account
  • Overall, homeowners can enjoy greater wealth growth than renters.

2. Studies have shown that a homeowner’s net worth is 45x greater than that of a renter.

3. Just a few months ago, we explained that a family buying an average priced home at the beginning of 2017 could build more than $42,000 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 that all the expenses the landlord incurs are already baked into the rent payment –along with a profit margin!!

Bottom Line

Owning a home has always been, and will always be, better from a financial standpoint than renting.

 

 

 

http://www.VCNeighborhoodValues.com

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Joe Pryor
The Virtual Real Estate Team - Oklahoma City, OK
REALTOR® - Oklahoma Investment Properties

I have an auto-calculating psreadsheet from pat Zaby that does a rent versus own comparison. It is quite illuminating to renters when you show this to them.

May 15, 2017 07:48 AM #1
Rainmaker
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Chris B Johnson
Allison James Elite - Moorpark, CA
REALTOR®Quality Not Quantity #ChrisBJohnsonRealtor

Very helpful tool Joe Pryor . Is it one you can share?

May 15, 2017 07:50 AM #2
Rainer
234,561
Jayne Esposito
Coldwell Banker - Morgan Hill, CA
SRES, GREEN

This is great information to share with renters.  I especially like point #2 

May 15, 2017 07:50 AM #3
Rainmaker
313,677
Chris B Johnson
Allison James Elite - Moorpark, CA
REALTOR®Quality Not Quantity #ChrisBJohnsonRealtor

Thank you Jayne Esposito 

May 15, 2017 07:51 AM #4
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Rainmaker
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Chris B Johnson

REALTOR®Quality Not Quantity #ChrisBJohnsonRealtor
Is it Too Late to Short Sell My Home??
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