Five reasons homeownership is a good financial investment

According to a report by Trulia, “buying is cheaper than renting in 100 of the largest metro areas by an average of 37.7%.” That may have some thinking about buying a home instead of signing another lease extension, but does that make sense from a financial perspective? 
In the report, Ralph McLaughlin, Trulia’s Chief Economist, explains: 
“Owning a home is one of the most common ways households build long-term wealth, as it acts like a forced savings account. Instead of paying your landlord, you can pay yourself in the long run through paying down a mortgage on a house.” 

The report listed five reasons why owning a home makes financial sense:

  • Mortgage payments can be fixed while rents go up.
  • Equity in your home can be a financial resource later.
  • You can build wealth without paying capital gains.
  • A mortgage can act as a forced savings account.
  • Overall, homeowners can enjoy greater wealth growth than renters. 
Bottom Line 
Before you sign another lease, why not discuss your options with a trusted financial adviser or Realtor?

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