Most people are aware that owning their own home is a big part of living the American Dream. And owning your own home has some great financial benefits. But many people still rent the home they live in. I do not understand why they do.
I realize for many that they simply cannot buy their own home. They may say that their income may be too low to qualify for a mortgage, or maybe they just cannot save enough for the down payment. And when they say this, I reply B…S…!
As to the income, if they are paying rent, they should be able to afford the same amount as a mortgage payment. In fact, the mortgage payment on a similar home will probably be less. As to saving the down payment, there are ways to purchase a home with little or no money down. I won’t rehash this subject, as I have written about it in the past.
Here is some evidence to back up my claim of benefits to owning your own home.
Home ownership provides certain tax savings.
Owning a home provides forced savings in the form of equity.
Owning a home will lock in your monthly housing costs and avoid rent increases.
It is almost always cheaper to own a home than to rent it.
I am aware of no other investment that you can live in!
A previous post stated that the average homeowner has a net worth which is up to 44 times greater than someone who rents (see above).
Another recent post said that an average priced home could build equity over a five year period of nearly $50,000.
Now – you may think that if you rent, the cost of major repairs to the building are the landlord’s responsibility – not yours. But the cost of these repairs are built into the rent that you pay. And there is also a profit margin in the rent.
From a financial standpoint, it is obviously better to own than to rent. If you would be interested in finding out how to become a homeowner instead of a tenant, call me, Art Reiman – Realtor- at 732-598-7700