Entire books have been written on the advantages of owning real estate. We're going to cover it here - in about one page. Of course, this just touches the surface. Call us for more details.
First of all, why would someone rent, instead of buying a home? Lots of good reasons - maybe they are not settled, as in going to school, or wanting to live somewhere else, or their career is in a state of change. Or, maybe they do want to own a home, but they have financial issues. And, many a person has lived below their means for a while, in order to save money. There are lots of good reasons to rent. But, there are lots of reasons to not rent, also.
It's important to realize that everyone makes a house payment. But not everyone owns their home. With all of the arguments for renting - and some of them are very good - it's not a good time to rent. Capital Economics economists noted that for the first time in 30 years the median monthly mortgage payment is about the same - or less - than the median rental payment. According to the study, in the last 26 years, home owners have increased the amount they spend on household expenses by 12 percent, while renters have increased it by 22 percent.
Also, Trulia's Summer Rent vs. Buy Index found that buying a home is cheaper than renting in 74 percent of the country's 50 largest cities. Trulia compared the cost of buying and renting a two-befroom apartment, condo, or townhouse in the nation's 50 largest cities.
Housing affordability is at it's highest in 20 years. According to the National Associaiton of Home Builders/Wells Fargo Housing Opportunity Index, about 72 percent of all new and existing homes sold in the second quarter of the year were affordable to families earning the national median income of $64,200. The record of 74.6 percent was reached last quarter.
And finally - just some good old common sense - ask your parents or grandparents what they paid for their home. You can't buy an inexpensive new car today for less than what my parents paid for their first home. Buying a home will stop rent increases, and start paying off a loan to get you equity - tax advantages - and no landlord or management company telling you what to do.