Owning a home has great financial benefits, yet many continue to rent. Let’s look at the financial reasons why owning a home of your own has been a part of the American dream for as long as America has existed.
Buying or renting a home is a very personal decision, with emotional and financial considerations that go beyond whether to invest in this one asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.
- The top 4 financial benefitsof homeownership:
- Home-ownership is a form of forced savings.
- Home-ownership provides tax savings.
- Home-ownership allows you to lock in your monthly housing cost.
- Buying a home is cheaper than renting.
- Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.
- A family that purchased an average-priced home at the beginning of 2017 could build more than $48,000 in family wealth over the next five years.
- Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already included the rent payment– along with a profit margin!!
*Owning a home will always be better from a financial standpoint, than renting*