5 Reasons Why Homeownership Is a Good Financial Investment

5 Reasons Why Homeownership Is a Good Financial Investment

Published by: The KCM Crew, December 1, 2016

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:

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, perhaps you should sit with a real estate professional in your area to better understand all your options.

For the full article… Visit “Keeping Current Matter” at: http://www.keepingcurrentmatters.com/2016/12/01/5-reasons-why-homeownership-is-a-good-financial-investment/

5 Reasons Why Homeownership Is a Good Financial Investment

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