The Cost of NOT Owning Your Home

    The Cost of NOT Owning Your Home | MyKCM

    Owning a home has great financial benefits, yet many continue to rent! 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.

    Zillow recently reported that:

    “In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.”

    What proof exists that owning is financially better than renting?

    1. We recently highlighted the top 5 financial benefits of homeownership:

    • Homeownership is a form of forced savings.
    • Homeownership provides tax savings.
    • Homeownership allows you to lock in your monthly housing cost.
    • Buying a home is cheaper than renting.
    • No other investment lets you live inside of it.

    2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.

    3. Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2017 could build more than $48,000 in family wealth over the next five years.

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

    Bottom Line

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

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    Alan Harling

    I relocated to Colorado from Illinois where I built a successful career in real estate representing both buyers and sellers. My success was based on building a relationship of trust and understanding with my clients, utilizing data to support actions, and implementing problem solving skills throughout the contract-to-closing process – all of which you can expect me to continue as I launch my business in Colorado. Experience as a certified Project Management Professional laid the foundation for my organization and management skills which carry over into my real estate business. Personal experience as a collegiate athlete and coach contribute to my competitive spirit. In my free time, I enjoy exploring hiking trails, spending time with my husband and three sons, and spoiling our dog Lilly.

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