5 Reasons Why Homeownership Is a Good Financial Investment

    5 Reasons Why Homeownership Is a Good Financial Investment | Keeping Current Matters

    According to a recent report by Trulia, “buying is cheaper than renting in 100 of the largest metro areas by an average of 37.7%.” That may have some thinking about buying a home instead of signing another lease extension. But, does that make sense from a financial perspective?

    In the report, 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 report 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 /The KCM Crew 120116

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    Jennifer Carstensen

    RE/MAX Real Estate Experts 901-685-6000 License: 317824 Office License: 262452

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