[Infographic] How Home Ownership Builds Wealth
Source:Keeping Current Matters
HOW TO CREATE REAL FAMILY WEALTH
Buying a home is often the biggest financial decision that any family will make.
If you are ready and willing, find out if you are ABLE to buy a home by speaking with one of our mortgage experts about a no cost, no obligation, full evaluation of your credit and options.
Hiring a local real estate professional who knows the area that you would like to move to is often the best next step.
A few items to consider:
- The average net worth of a homeowner is 45X's greater than that of a renter. (Example: Homeowner - $225,000 vs. Renter - $5,000)
- Even after the housing crisis (Dec. 2007-June 2009), net worth of homeowners over time has been greater than renters.
- When you rent, you are paying your landlord's mortgage...Why not start paying your own?
Find a balance between the pros and cons
When to Rent
- Interest rates are historically low
- You're financially stable
- You have researched the market
- You have good credit
- You're ready for a long term investment (i.e. you plan on living in the home 5 years or more)
- You understand potential tax deductions
When to Rent
Extra costs, maintenance requirements
When to Rent
- You require flexibility
- Uncertain career path
- Financial instability
- Lack the time to care for property
- Poor credit
When to Rent
Rent hikes, lost investment, landlord's rules
Buying a home creates real wealth for you and your family
When to Rent
- Building equity in your home
- Gaining tax advantages
- Convert your home into a rental property investment
- Owning a property as it appreciates
When to Rent
Homeownership puts your housing costs to work for you. Paying down a mortgage principal increases your net worth.
When to Rent
It is difficult to invest their "saved" money each month without a near-term goal, like a down payment.
Overall trends state that buying is the best option. Always evaluate your situation and long term goals before making a home purchase.
If you have done your research, you can decide if and when you are prepared to buy a home and create real wealth for you and your family.
When to Rent
- http://www.keepingcurrentmatters.com/2015/06/24/buy-vs-rent-what-really-creates-family-wealth
- http://www.trulia.com/blog/rent-buy
- http://www.federalreserve.gov/pubs/bulletin/2014/pdf/scf14.pdf
- http://www.nytimes.com/2014/11/30/opinion/sunday/homeownership-and-wealth-creation.html
- http://www.zillow.com/home-buying-guide/rent-vs-buy