7 Reasons Buying Beats Renting
- Why Buying a Home is Better than Renting
In most parts of the U.S., home buying is still a better decision than renting for people who plan to remain in the space for at least 4-5 years or more, both for financial and emotional reasons.
- Price Security in Home Buying
Your mortgage payment is one constant you can rely upon. Price consistency offers the advantage of planning for the long-term future.
- Investment – Cash-on-Cash Return
For example, if you put a 20 percent down payment on a $100,000 house. The price rises 5 percent, to $105,000. You would earn $5,000 on your initial outlay of $20,000 – a return of 25 percent. This is known as cash-on-cash return, and homeownership can make this type of gain accessible to the average person.
- Forced Savings
A home functions as ‘forced savings,’ helping you build equity. Each month, a portion of your mortgage payment is returned to you in the form of equity. The longer you own your home, the more equity you build – both via mortgage payments as well as in potential value increases.
- Flexibility with Home Improvements
As a homeowner, you can have the freedom to upgrade your home to your heart’s content – without carrying risk or ongoing financial commitment.
- Pride of Home Ownership
As a homeowner, you can take pride in crafting, personalizing and perfecting your home. The space can truly morph into a reflection of you, in a way that a rental property never could.
- Neighborhood Connection
As a homeowner, you’re more likely to become involved in your local community. There’s a stronger chance that you’ll join the neighborhood association, organize potlucks or block parties with your neighbors, coach a local sports league or volunteer at the local school.
If you are considering buying your own home and don’t know where to start, give me call, I can help you! Susan Lerner 281.437.5044
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