Why Does Owning a Home Make More Sense than Renting?
Buying a home can help you escape the cycle of rising rents. The trend of rising rents throughout the country is only expected to continue. In fact, the rate of rising rents is increasing faster than the median income in America. Furthermore, a monthly mortgage cost is often around the same amount, or even cheaper than the cost of monthly rent.
Homeownership is a powerful wealth-building tool. The average household net worth of a homeowner is $255,000, whereas a renter is $6,300. Owning a home is also an appreciating investment. Depending on market trends the value of a home can increase or decrease, but generally, home prices increase over time. The average home appreciation rate in the U.S. is 3.9 percent per year. If a home follows this pattern, the return on a 5-year 200,000-dollar investment would be over 33,000 dollars.
Homeownership is typically a good hedge against inflation. When the value of the dollar goes down, the price of a home goes up. Inflation also drives up the price of building a new house. This makes the idea of buying an existing property more appealing. This creates a higher demand and further lifts home prices.
If you are ready to take advantage of the benefits of homeownership, connect with a real estate professional to explore your options!