“A homeowner’s net worth is 40 times greater than a renter’s.”
You may have seen reports in the news recently saying it’s better to rent right now than it is to own your home. But before you let that impact your decisions, you should understand what these claims are based on.
A lot of the time, these reports are assuming things that aren’t realistic for the average household. For example, the methodology behind one of those reports says that renting is the smarter financial option because of the opportunity to invest money elsewhere. It assumes renters take the money they’d spend on costs tied to buying a home and put it in an investment portfolio.
But here’s the thing – most people who rent aren’t making those investments. Ken Johnson, Co-Author of the BH&J National Price-to-Rent Index, explains:
“One of the difficulties with the rent and reinvest model is many people . . . simply rent and spend the difference. . . . That’s wealth destroying.”
The reason homeownership is one of the best investments you can make is the wealth it helps you build. That’s why there’s a significant difference between the net worth of the average homeowner and the average renter (see graph below):
So, before you renew your rental agreement, think about the opportunity to build wealth that homeownership provides.
Bottom Line
If you’re unsure whether to continue renting or to buy a home, let’s connect to help you make the best decision.
To view original article, visit Keeping Current Matters.
Why It Just Became Much Easier to Buy a Home
More homes now qualify for a conforming loan with lower down payment requirements and easier lending standards.
Tips for Single Homebuyers: How to Make Your Dream a Reality
While buying a home solo can feel like a big challenge, it doesn’t have to be. Lean on the professionals to help you navigate these waters.
Just Sold! 36 Old Neck Road S., Center Moriches, NY
Check out the latest sale from BrookHampton Realty!
Let us help you with your next move!
Why Now Is a Great Time to Sell Your House
Selling sooner rather than later helps your house rise to the top of a holiday buyer’s wish list so you can close the best possible deal.
Happy Thanksgiving!
Wishing you a wonderful holiday filled with the warmth and happiness of the season. We are thankful for the opportunity to help our clients find their dream home!#brookhamptonrealty #happythanksgiving
Home Sales About To Surge? We May See a Winter Like Never Before.
Buyer demand is still extremely strong, and we may soon see an uncharacteristic increase in the number of homes for sale.