While there are solid reasons for renting (like you anticipate being moved frequently by your employer), many people are not reaping the financial benefits of owning their own home when they could be.
According to Realtor.com:
“Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option…as people get more savings in their pockets, buying becomes the better option.”
What are the Financial Benefits of Owning a Home?
There are five main benefits of owning your home:
- The equity you build in your home is a form of forced savings.
- There are tax benefits to being a homeowner.
- Rent is constantly rising, but if you own your home, your mortgage payment is typically stable.
- House payments are usually less than rent.
- Owning a home is an investment that you get to live in.
These benefits mean that homeowners tend to have greater net worth and greater financial stability than those who rent. Studies have also shown that a homeowner’s net worth is 44x greater than that of a renter.
Nationally, if a family purchased a median-priced home in 2019, by 2024 they will have an average of nearly $38,000 in equity – family wealth – due to projected price appreciation. In the Northern Virginia area, this could be even more, as our home values tend to rise faster than national values.
It’s true that renters do not have to pay out of pocket for taxes and home repairs. But what is often misunderstood is that that your rent payment is calculated to include funds for repairs and taxes, and a mortgage payment, AND profit. So you are paying all those things anyway. So why not pay yourself?
Owning a home is a big step, but one that may be well worth your while. The economic benefits simply cannot be realized with renting. When it comes to buying or selling your home, we are here to help answer any questions and guide you through a better understanding. Please do not hesitate to contact us at email@example.com or phone us at 202.800.0800.