According to a recent report by Trulia, “buying is cheaper than renting in 100 of the largest metro areas by an average of 33.1%.” The report may have some people thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective?
Ralph McLaughlin, Trulia’s Chief Economist explains:
“Owning a home is one of the most common ways households build long-term wealth, as it acts like a forced savings account. Instead of paying your landlord, you can pay yourself in the long run through paying down a mortgage on a house.”
The article listed five reasons why owning a home makes financial sense:
1.) Mortgage payments can be fixed while rents go up.
2.) Equity in your home can be a financial resource later.
3.) You can build wealth without paying capital gains.
4.) A mortgage can act as a forced savings account.
5.) Overall, homeowners can enjoy greater wealth growth than renters.
Bottom Line
Before you sign another lease, let’s get together and discuss all your options. We are THE MILITELLO TEAM, serving North of Boston in Essex County on the North Shore. Call us today and put our 40+ years' of experience to work for you.
THE MILITELLO TEAM
Joseph Militello (978) 815-3877
Kathleen Militello (978) 500-1480
Vice-Presidents / Realtors
Source: Keeping Current Matters!
