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The Cost of NOT Owning Your Home #RealEstate #OrlandoRealEstate #FLRealEstate #FredaRealty

Thursday, September 15, 2016   /   by Matthew Freda

The Cost of NOT Owning Your Home #RealEstate #OrlandoRealEstate #FLRealEstate #FredaRealty


The Cost of NOT Owning Your Home | Simplifying The Market


The Cost of NOT Owning Your Home







Owning a home has great financial benefits. Because of this, more and more experts are growing concerned about the ramifications of a falling homeownership rate. Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.


The outcomes of a falling homeownership rate can be devastating. As explained byApartmentList.com:



“Our research indicates that not owning a home has a sizable financial cost, as renters miss out on low mortgage rates and are hit by higher rents.


This phenomenon may exacerbate inequality in our society, as those wealthy enough to invest in real estate benefit from lower interest rates, whereas minorities and younger Americans, hit by rising rents and student debt, risk being locked out of homeownership.”





What proof exists that owning is financially better than renting?




1. A study published by the Joint Center of Housing Studies at Harvard University shows the financial benefits of homeownershipThe study mentions five major financial benefits:



  • Housing is typically the one leveraged investment available

  • You're paying for housing whether you own or rent

  • Owning is usually a form of “forced savings”

  • There are substantial tax benefits to owning

  • Owning is a hedge against inflation


2. Studies have shown that homeowners have a net worth that is 45X greater than that of a renter.


3. Just last month, we explained that a family buying an average priced home this past January could build more than $46,000 in family wealth over the next five years. 


4. Some argue that renting eliminates the cost of taxes and home repairs. Every potential renter must realize that all the expenses the landlord incurs are baked into the rent payment already –along with a profit margin!!




Bottom Line




Owning a home has always been, and will always be better from a financial standpoint than renting.







eXp Realty, LLC
Matthew Freda
651 W Warren Ave
Longwood, FL
407-513-4724

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