To Buy or To Rent – That is the Question?
Buying VS. Renting
If you are going through the continuous internal debate of whether to buy or rent a home, it is important to note that owning a home significantly contributes to individual wealth. It is no surprise that confidence in buying a home decreased immensely after the housing crisis, which led many to rent. It is time to rethink that decision.
As reported in a Survey of Consumer Finances by the Center for Responsible Lending of The Federal Reserve Board, the median net worth for renters was $5,400 in 2013 and $195,400 for homeowners in 2013. When you look at the numbers overall, homeownership has continuously been a pathway to wealth, even during the hardest of economic times. Renters on the other hand, notoriously accumulate little to no wealth during their renting years.
The accumulation of wealth during the journey of homeownership can be attributed to the nature of savings that comes with owning a home. Since you mostly save for your down payment, and then continuously pay a portion of your mortgage principal on a monthly basis, your home acts as an investment opportunity that follows you throughout the entire course of homeownership.
When home prices begin to appreciate, homeowners can accumulate a great deal of wealth. However, it is important for homeowners to realize that home appreciation fluctuates with the ever-changing housing market.
Therefore, if you are still determining whether or not you want to buy or rent, it may be in your best interest to make the move to buy the home of your dreams.
With years of experience assisting individuals in selling and buying their homes, you can rest assured that our team will help with all of your local real estate needs. Contact the Zwahlen Team, your trusted San Ramon Valley Realtors for all of your real estate needs in Danville and the surrounding cities.