Owning a home has great financial benefits, yet many continue to rent. Let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for the entirety of America’s existence.
Realtor.com reported that:
“Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option…as people get more savings in their pockets, buying becomes the better option.”
What proof exists that owning is financially better than renting?
In our opinion, here are the top 5 financial benefits of homeownership:
- Homeownership is a form of forced savings.
- Homeownership provides tax savings.
- Homeownership allows you to lock in your monthly housing cost.
- Buying a home is cheaper than renting.
- No other investment lets you live inside of it.
Studies have shown that a homeowner’s net worth is 44x greater than that of a renter and a family that purchased an average-priced home at the beginning of 2018 could build more than $49,000 in family wealth over the next five years.
And while home values can also depreciate, historically values do regain. Your Loan Officer that you choose to work with, should always help you discover what your buying power will be while meeting your family financial goals. This way if home values do decrease, you’ll still be comfortable with your overall payment and will ride out the depreciating wave.
And while some argue that renting eliminates the cost of taxes and home repairs, every potential renter must realize that all the expenses the landlord incurs are already calculated into your rent payment – along with their profit margin. There are ways that you can protect your new home purchase from future repairs by purchasing a Home Warranty. In many cases, the Seller will pay for this Home Warranty on your behalf for your first year as well.
What’s The Bottom Line?
Owning your home has many social and financial benefits that cannot be achieved by renting. You can have your American Dream.
Karen Jones is a Licensed Mortgage Loan Officer (NMLS 307015) located in Phoenix and serving Arizona families with their home lending needs. As a Banker of over 32 years, Karen is dedicated in ensuring that her clients are well educated and prepared for their new home purchase. Learn more about our 100% Financing programs and obtain your Underwriting Credit Approval before you start shopping. Let a home loan specialist guide you by contacting Home Loan Officer, Karen Jones from AmeriFirst Financial, Inc. located in Phoenix, Arizona.
