5 Reasons Why Homeownership Is a Good Financial Investment

According to a recent report by Trulia, “buying is cheaper than renting in 100 of the largest metro areas by an average of 37.7%.”

That may have some thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective?

buying-a-home-investment

In the report, 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 report 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.

RELATED: The Ultimate Guide to Buyer A Home

YOUR TURN

Are you a first-time home-buyer reaping the rewards of homeownership? Or are you a renter looking to better understand your options surrounding homeownership? What questions or concerns do you have? We want to hear from you!

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