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Buying a home? Search all homes for saleAccording to a recent study by the Joint Center for Housing Studies at Harvard University, home buyers consider not only the social aspects of the investment, but the financial ones as well. In this article, I found five important points worth mentioning.
- Paying rent doesn’t make sense. This is especially the case in Southern California, where rental payments continue to skyrocket. If you’re a tenant now, consider how much you’re paying each month. Ultimately, your rent only benefits you in the short term, but helps your landlord’s mortgage in the long term. If you pinch a few pennies, you could be submitting a down payment on your very own home.
- Homeownership provides financial opportunity. Investing in your own property can lead to other investments. Plus, you’re putting money every month towards something of your own, not your landlord’s.
- Owning a home helps build family wealth. If you want to pass an investment on to your children, this is a great way to start. They can inherit the home when they’re older, especially when you’re ready to move out and downsize.
- Homeownership helps you retire. Although you won’t be able to retire right after buying a new home, the investment drives planning. It helps facilitate retirement.
- Homeownership builds equity. It allows you to leverage yourself into other potential wealth-building opportunities. For instance, it could lead you towards paying for your kids’ college education, an investment property, or a trip around the world. The possibilities are endless!
