Homeownership: Does it really beat renting?
Homeownership – When we talk about Scottsdale real estate Arizona or any other city across the nation, paying rent is does not prove to be a good investment.
Data shows that owning is the improved way to start building family wealth.
- Paying rent is not a good investment, but owning is a great way to start building family wealth.
- Not only does homeownership allow you to provide your children with great education, but you can also decide whether or not your child grows up with a pet.
- Owning a home provides you with tax benefits while also providing you with more living space to move around in.
Buying a Home is 36% Less Expensive Than Renting Nationwide
In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.
The updated numbers actually show that the range is an average of 5% less expensive in Orange County (CA) all the way up to 46% in Houston (TX), and 36% Nationwide!
Other interesting findings in the report include:
- Interest rates have remained low and even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
- Some markets may tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
- Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.
Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to discuss the best course of action to get you into your dream home!
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