Put Your Housing Cost To Work For You!
March 30, 2016
There are many young people debating whether they should renew the lease on their apartment or sign a contract to purchase their first home. As we have said before, mortgage interest rates are still near historic lows and rents continue to rise.
Housing Cost & Net Worth
Whether you rent or buy, you have a monthly housing cost.
As a buyer, you are contributing to YOUR net worth.
Every mortgage payment is a form of what Harvard University’s Joint Center for Housing Studies calls “forced savings.”
“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”
The principal portion of your mortgage payment helps build your net worth through building the equity you have in your home.
As a renter, you are contributing to YOUR LANDLORD’S net worth.
Below is an example of the home equity that would be accrued over the course of the next five years if you had purchased a home in January; based on the results of the Home Price Expectation Survey.
Bottom Line
Use your monthly housing cost to your advantage! Meet with a local real estate professional who can explain the opportunities available in your market.
Source: Keeping Current Matters
Real Estate Market Articles
The Cost of Waiting: Interest Rates Edition
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Protect Yourself From Consumer Wire Fraud
The Truth About Home Mortgage Rates and Downpayments
April 2017 Federal Reserve Interest Rate Update
The Great News About Rising Prices for Homeowners
The #1 Reason to Sell Now... Not Next Spring
How Historically Low Interest Rates Increase Your Purchasing Power
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How Scary is the Housing Affordability Index?
Do Homeowners Realize Their Equity Position Has Changed?
Put Your Housing Cost To Work For You!
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Important Things You Need to Know To Be Ready for the Changes in Mortgage Laws
Homeownership as an Investment: The Role of Price Appreciation
Why Tax Planning for Real Estate Has Become More Important
February Sees an Uptick in Real Estate Activity
New York Times: Homeownership is Best Way To Build Wealth
Harvard's 5 Financial Reasons to Buy a Home
Balance Returns to Arizona Housing
Want to Sell Your House? Price it Right!
It's a Price Sensitive Market, Again
Is Housing Returning to a Balanced Market?
Housing Market Trends through 2013
Mortgage Interest Rates: Where Are They Headed?
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FHA Will Increase it's Annual Mortgage Insurance Premium
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Arizona Housing Not So Distressed Any More
Tucson Housing Deflating or Recovering? Get the Real Story
In Real Estate it’s also Price, Price, Price
A Message To Homeowners - Things Have Changed…
A Shortage of Housing Inventory?
Signs of an Arizona Housing Recovery
The Arizona Luxury Market Breathing Life
Tucson Home Prices Up 7% in March
Is the Tide of Distressed Home Sales in Arizona Changing?
The Start of the Housing Upturn
