Homeownership Is a Good Financial Investment!

Real Estate

According to a recent report by Trulia, “buying is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.” The report may have some people thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective?

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 article 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, let’s get together and discuss all your options.