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 paying YOUR mortgage.
Every mortgage payment is a form of what Harvard University’s Joint Center for Housing Studies calls “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 paying YOUR 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 the results of the Home 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.
Follow and Share this blog for current real estate news and views for St Petersburg, Sarasota and Tampa Bay.
Call Christina Stramiello at Lifestyle by Design today for your free real estate consultation. No strings, no pressure, just great information.
Visit wwwLifestyleByDesignRealEstate.com to view available homes directly off the MLS. (Faster and more relevant than third-party sites such as Zillow or Trulia.)
By Christina Stramiello, PA
Broker: Robert Slack Fine Homes, LLC
3320 SW 33rd Rd, #100
Ocala, FL 34474