There are many young people debating whether they should renew the lease on their apartment or sign a contract to purchase their first home.
Housing Cost & Net Worth
Whether you rent or buy, you have a monthly housing cost.
As a buyer, you are payingYOURmortgage.
Every mortgage payment is a form of whatHarvard University’s Joint Center for Housing Studiescalls“forced savings.”
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”
The principal portion of your mortgage payment helps build your net worth through building the equity you have in your home.
As a renter, you are payingYOUR LANDLORD’Smortgage.
Below is an example of the home equity that would be accrued over the course of the next four years if you were to buy a home by the end of this year; based on theresultsof theHome Price Expectation Survey.In this example, simply by paying your mortgage, you have just increased your net worth by over $34,000!
Use your monthly housing cost to your advantage! Meet with a local real estate professional who can explain the opportunities available in your market.
Author:Dawn Green Phone: 480-227-1658 Dated: September 15th 2015 Views: 285 About Dawn: ...
Report by Ricky KhamisRealtor Report2016 Best Year for Housing in a De
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