Homeownership Is A Good Financial Investment

Dated: 06/13/2017

Views: 87


According to a recent report by Trulia“buying is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.” The report may have some people thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective?


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 article 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

Want to Advertise on this Site?

Latest Blog Posts

The Financial Benefits To Owning A Home

Owning a home continues to hold some of the greatest financial benefits available, yet, many individuals and families continue to rent. Why do they call owning a home "The American

Read More

What Are The Financial Benefits To Owning A Home

Owning a home continues to hold some of the greatest financial benefits available, yet, many individuals and families continue to rent. Why do they call owning a home "The American

Read More

4 Reasons December Is Favorable For Buyers

4 Reasons December Is Favorable for Buyers DAILY REAL ESTATE NEWS | FRIDAY, DECEMBER 08, 2017 Many home shoppers don’t think about purchasing a house during the holiday months—many even put

Read More

5 Great Tips For First Time Home Buyers

No matter how much time you spend on researching and educating yourself about your home purchase, it's hard to cover every detail. Here are a few tips for avoiding rookie mistakes with your;

Read More