According to a report by Trulia, “buying is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.” 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 5 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
Before you sign another lease, contact a Ruhl&Ruhl Realtor to discuss all your options.
Read more about the reasons you should buy this summer in Keeping Current Matters Summer 2017 Buyer’s Guide.