There are some renters that have not yet purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either your mortgage or your landlord’s.
As The Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.
That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
Christina Boyle, a Senior Vice President, Head of Single-Family Sales & Relationship Management at Freddie Mac, explains another benefit of securing a mortgage vs. paying rent:
“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”
As an owner, your mortgage payment is a form of ‘forced savings’ that allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee your landlord is the person with that equity.
The graph below shows thewidening gapin net worth between a homeowner and a renter:
Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, owning might make more sense than renting with home values and interest rates projected to climb.
provided by Keeping current matters
Author:David Fuller Phone: 602-363-7653 Dated: April 6th 2016 Views: 3,564 About David: ...
View our latest blog posts in your RSS reader. Click here to access.
(602) 363-7653 PLEASE CALL, TEXT OR GO TO www.onlinephoenixhomes.com I WILL PICK UP THE PHONE,TEXT OR EMAIL BACK IMMEDIATELY UNLESS I'M WITH A CLIENT!!! :) Everything you need to know about buying or selling Phoenix area real estate can be found here on our Web site! As the preeminent real estate professionals in the your community, we are dedicated to providing the finest service available while breaking new ground.
Because the real estate industry in Phoenix is becoming more sophisticated and challenging every day, you need a real estate agent who is a professional who understands the industry and is positioned to stay ahead of the game.
We go the extra mile to help you achieve your goals. That's why we constantly research the Phoenix market and property values so your home is priced effectively from day one. We also make sure the public knows your home is for sale by using innovative advertising and marketing techniques to attract potential buyers.
Many have questioned the stability of certain sectors of the U.S. Econ
"David Fuller has years of experience as a realtor in the market to help you through the process, as a buyer or seller. He has fierce negotiating skills to ensure his clients receive a competitive price and to help negotiate any extra items needed in the contract, such as repairs. David is a longtime Arizona resident and is able to provide his clients excellent information on the location(s) they are interested in purchasing a home. He has great connections to the other services necessary to making an informed property purchase, such as home inspector, loan officers, evaluators, etc. He also has connections to other realtors outside of Arizona. David and his associates will take the time to understand exactly what a buyer is looking for and what a seller would like. David has a quick response time to any inquiries from potential sellers or buyers, and strives to make appointments ASAP. My wife and I were extremely happy working with David in the purchase of our home and we highly recommend him for any type of realty service."