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?
Before you sign another lease, why not discuss your options with a trusted financial adviser or Realtor?