by The KCM Crew on December 1, 2016 in First Time Home Buyers, For Buyers, Move-Up Buyers
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:
Mortgage payments can be fixed while rents go up.
Equity in your home can be a financial resource later.
You can build wealth without paying capital gains Visit Your URL.
A mortgage can act as a forced savings account.
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: Keepcurrentmatters.com