Rent or Buy - Five Pros and Cons of Purchasing a Home

Dated: July 30 2019

Views: 953

1.         Consider this . .  owning a home is the No. 1 way most Americans build wealth.  Experts say the average net worth of a homeowner was $231,420 in 2016.  According to the Urban Institute, renter’s average net worth was only $5,200!  There is no doubt that over time, individuals and families have built wealth and financial security as a result of owning their own home - a huge factor to consider as you think about whether to rent or own.

2.         You don’t need a big down payment to own a home.  Home ownership might have a lower price of entry than you think.  While a 20% down payment usedto be the standard, today’s average is 5 percent said an expert at the Urban Institute. As a renter, you most likely need to deposit two months rent in advance plus a security deposit.  That money sits with the Landlord rather than making you money.

3.         It is true that renters have one definite benefit over homeowners - flexibility.  It’s a lot easier to pick up and move; whether to escape noisy neighbors or follow a job offer across the country.  If you are not ready to settle in a single location for a 3-5 year period you should definitely consider renting.

4.         However, if you continuerenting, it comes at a cost.  Rents will always go up!  Inflation alone pushes rent up over time.  And if the neighborhood gets trendy, rents can go through the roof.  

If you own your own home and have a fixed rate mortgage, your monthly payment is a fixed cost.  As inflation rises, living in your own home gets effectively cheaper. 

5.  While owning a home is not the only path to happiness, it does provide a sense of accomplishment that is priceless.

 

READY TO BUY . . I’M HERE TO HELP YOU!

CALL ME:  DEE JOHNSON, TRIANGLE HOME FINDERS/CHOICE RESIDENTIAL – 919-427-8830.

 

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Dee Johnson

I've been a real estate broker since 1989. I started my career focused on commercial real estate selling office buildings and retail centers in Miami, Florida. In 2016, my career shifted to residentia....

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