Does home ownership build wealth? That depends. Everyone has a different idea of what “wealth” looks like. For some it looks like piles of money with a Scrooge McDuck style diving board and a room full of gold coins. For others it means the freedom to travel, a little farm full of baby goats in pajamas, or lounging on a beach with a drink made mostly of tiny umbrellas.
Whatever wealth looks like to you, home ownership is one way to build financial security and emotional stability. Is it right for everyone. No. Should I being saying that as a realtor? Absolutely. Knowing which situation is right for clients is critical in helping map out their goals. I almost always encourage people to at least think about buying over renting because in our area rentals are a hot commodity. So even if you don’t plan on staying in that starter home forever, it can be a great source of passive income in the future.
Here are some reasons to keep renting:
1. You’re investing your extra income.
2. You’re saving up for a down payment
3. You want your living arrangements to remain flexible.
4. You’re working on your credit.
5. You’ll be in the house for 3 years or less.
6. You don’t want to be bothered with repairs or maintenance.
7. You don’t mind paying a premium to offset the costs of maintaining a home.
8. You want a little buffer if the market goes south.
Here are some reasons to buy:
1. You want stability.
2. You’ll be in the area for 3 or more years.
3. You have money in the bank for repairs/maintenance.
4. You want the freedom to remodel or decorate at will.
5. You want the capability to rent the house out in the future.
6. You want the tax advantage home ownership offers.
7. You want to build equity.
8. You have a long term plan & goals.
Want a more in-depth look? Contact me to set up a time to chat about the home buying process.