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 Dream?" Let's take a look!
Zillow recently came to the following conclusions in one of their previous postings:
"In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense then renting it."
So what are the reasons that make home ownership so great?
* Well, for one, home ownership is a form of forced savings. Home ownership also provides tax savings that you may be able to
claim during tax season. It also allows you to lock in your monthly housing costs. Rents can change (and usually increase) each
year, while a 15 or 30 year fixed mortgage remains the same payment year after year. And to top it off, what other investment allows
you to live in it while you wait for the equity to increase?
* Studies have concluded that a home owners net worth is about 44% larger than that of a renter. That more than likely has to do with
the fact that a home owners residence is building equity, while the renters residence is not. Rent is paid to the land lard, and the
landlord (owner) is the one obtaining the equity and having their mortgage paid by the renter.
* And lastly, there are now so many home buying and down payment assistance programs available, that it is actually
less expensive to buy a home vs renting one! Let's break that down, when you go to rent a property, first and last months
rent are always due. The average 3 bedroom rent in our area is around $2,200 per month, which translates to $4,400 as total
move in costs. Or, the same renter can get pre-approved, pay for an appraisal (roughly $500) and for a home inspection
(estimated around $300) and purchase a $335,000 home with 3.5% down payment (covered by the grant programs available,
which sometimes also covers closing costs) and own a home with a $2,200 monthly FIXED oayment for as little as $800 total
move in costs. That's a difference of $3,600 out of pocket.
So we are asking again .... What Are You Waiting For?!
To Begin Your Home Search, text the code BUYNOW to 909.460.8183 and you will be directed to our home searching app.
To receive a FREE Estimated Online Home Valuation, text the code HOMEVALUE to 909.460.8183
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