Home Ownership-Does it Still Make
Many of us are aware of the social benefits of home ownership. Questions do arise however about the financial benefits of home ownership. Does home ownership make financial sense?
The three recent studies in this article will help shed some light on the issue.
RealtyTrac, a real estate information company, recently released a report comparing home price appreciation to wage growth over the last two years.
The study revealed that home price appreciation has outpaced wage growth in 76% of U.S. housing markets during that time period. By how much? The graph shows their findings.
And we all know the importance of home appreciation in determining the net wealth of most American families. Merrill Lynch just issued a report covering the issue. Their findings are shown here:The question here is how much equity do you want to own by the time you are in your 30’s, 40’s or older? Seriously, everyone does grow older and you,the reader, will be in one of these graphs some day. Where would you like to be?
But, Does It Make Sense to Buy Now?
The survey company Pulsenomics just issued their findings on the cost of owning versus the cost of renting. They compared historical averages to the cost you can expect to pay today.
The cost of buying is far below historical averages.
Renting is another story.
Is it More Cost Effective to Buy
or Rent in St. Louis?
Back in January we published an article that takes a look at the St. Louis area. Did you know there’s an actual formula to help you determine what’s best for you? Click Here
You have probably heard the old saying, “There’s only two things certain in life – death and taxes.” May I add a third item? A mortgage. Unless you’re living for free with your parents or friends, you are paying a mortgage. Either your landlords or your own.
Call Finding Homes for You today at 636-532-4200 and we will help you escape the rental trap and start building your own financial future.
- 2015 Real Estate Projections from Freddie Mac
- Is it More Cost Effective to Buy or Rent in St Louis?
- 4 Smart Home Buying Tips for a Competitive Market