Manage episode 238210860 series 1316891
1. You’re paying for housing whether you rent or own. In our area, the median rent is about $1,750 per month. We’re also seeing that you can get a $200,000 property with a mortgage that has a monthly payment of around $1,200.
2. Owning is a form of forced savings. Research has shown that homeowners have a 44 times higher net worth than renters, on average. Ownership gives you the ability to build equity, pull out lines of credit, and more. You can’t do that in a rental.
Homeowners don’t have to worry about rising rental rates.
3. Owning is a hedge against inflation. Home values and rents go up in our market by about 8% to 12% each year. As inflation comes into the market, rent prices go up. If you’re in a home that you own, your mortgage will stay the same while your home value increases with the market.
4. There are substantial tax benefits. If you're living in your home full-time, you can take advantage of the homestead exemption and see significant tax savings through that.
In conclusion, from a financial standpoint, owning a home has always been and will always be better than renting. If you have any questions about buying, selling, or anything else related to real estate, don’t hesitate to reach out to us via phone or email today. We look forward to hearing from you.