Owning a home has outstanding financial benefits, however many continue to rent. Lets look at a few reasons why owning a property of your own has remained a huge part of the American Dream.
Buying is the most enticing option in many's long term plan. In many markets, renting is a short term housing option in order to build savings to buy a home.
Why is owning financially more beneficial than renting?
1) 5 financial benefits of home ownership:
Home ownership is a form of forced savings. Home ownership allows for tax savings. Home ownership locks in a monthly housing cost. Buying a home is cheaper than renting. Home ownership is the only form of investment that also provides a place to live inside of.
2) Homeowner's net worth is 44 times greater than the net worth of a renter.
3) A family that purchased an average priced home in 2018 could build over 49,000 in the next five years.
4) It is often argued that renting eliminates the cost of taxes and home repairs, however all of these expenses that the landlord of the rental are including in the rent payment, along with a profit margin.
Home ownership has many social and financial benefits that are unachievable by renting.