Benefits of Home Ownership vs Renting

04/16/24  |  Lori Docherty

Are you tired of paying rent without seeing a return on your investment? It's time to consider the numerous benefits of homeownership. By transitioning from renting to owning, you can transform your monthly expenses into a growing investment and significantly increase your net worth. Did you know that the average homeowner's net worth is 40 times that of a renter? Instead of filling someone else's pockets with your rent money, imagine building equity in your own home. Homeownership provides a roof over your head and is a valuable asset that contributes to your overall financial well-being. There are many reasons why homeowners have a higher net worth. Owning a home is akin to having a forced savings account, where each month part of your mortgage payment goes into the home's equity. On the other hand, renting is a sunk cost with no return on investment. Homes often appreciate in value, which can help increase a homeowner’s overall net worth. Additionally, homeowners can take advantage of valuable tax write-offs unavailable to renters. In fact, approximately two-thirds of a person's net worth comes from home equity. Home values have been steadily appreciating, with national home values rising by 46% since 2019. According to Case-Shiller, home prices increased by 5.5% last year, and they are projected to continue rising due to high demand and limited supply. However, owning a home should be viewed as a long-term investment, as homes are expensive to buy, maintain, and sell. A general rule of thumb is to plan to own your home for at least four years to break even or see a return on investment.

Making the switch from being a renter to a homeowner is a strategic step towards securing your financial future. If you're ready to explore the personalized benefits of buying versus renting, I'm here to guide you through the process. Reach out, and let's create a tailored buy-versus-rent scenario that's perfect for you!

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