Buying a home is one of the biggest financial decisions most families make in their lifetime. That being said, it is one of the best financial decisions that they can make. The average net worth of a homeowner is 45x greater than that of a renter. This is the biggest difference between buying and renting. Even after the housing crisis in 2008, net worth of homeowners has been greater than renters by far. When you rent you are paying your landlord’s mortgage.. Why not start paying your own? Most people are paying for housing whether they own or rent anyways. Make your housing cost work in your favor. Instead of contributing to your landlord’s net worth every month that you pay rent; contribute to your OWN net worth when you pay your mortgage and enjoy the potential tax benefits that come along with owning a home.
In a sense, home ownership is a form of forced savings. This can be very beneficial for the person who has trouble saving and tend to defer their savings for another day. That being said, It is important to find a balance between owning and renting, and knowing which one is right for you in your particular scenario in life.
When To Buy:
- You are financially stable
- You have good credit
- Your are ready for a long term investment
When To Rent:
- Financial instability
- You require flexibility
- Uncertain career path
Owning a home is a beautiful thing, personally and financially. Also, with interest rates historically low, purchasing a home has never been easier and economically feasible. If you are considering purchasing or selling your home, contact us on our MBG website or give us a call at 305.632.7248 and find out how we can help you!