Homeownership is Still the Best Path to Middle Class Wealth

 

Why Rent When You Can Own?

Did you know that NOW is a great time to SELL/BUY Real Estate? 

And the good news is that interest rates are still low  but don't wait to long, Fed Chairwoman Janet Yellen says "higher interest rates are coming"!!!

Autumn and the holidays are no longer a real estate dead zone, for several reasons and doesn't mean you should scrap plans for buying or selling your home this year.

In fact, October, November and December can actually be good months to buy/sell!

Call/text me at (630) 669-2401 or email me at mmancano@c21affiliated.com if you have any questions or need additional information and please feel free to visit and use my Real Estate Website www.MonicaMancano.com to see properties currently available in the MLS.  I can also set up a search for you to meet your critiera.

My Real Estate Dream Team and I are looking forward to helping you start your incredible journey of HOMEOWNERSHIP!

If you're wondering whether to Rent or Own, take a look at some recent research below about the average net worth of a homeowner.

Enjoy the article!

Homeownership is Still the Best Path to Middle Class Wealth

houses with driveway

Many have debated the benefits of homeownership since the housing market collapsed in 2008. They say buying a house is too risky, there are too many uncertainties and you could lose your shirt. Experts, however, prove otherwise.

According to a new study by the Federal Reserve, a typical homeowner has a net worth of $195,400 while the average renter’s was $5,400.

It doesn’t take a mathematician to see that owning is better than renting, in the long run. Lawrence Yun, chief economist at the National Association of Realtors recently blogged about the Federal Reserve study for Forbes magazine. He made some very good points.

The Federal Reserve study is based on 2013 data. That was a the beginning of the market recovery in some markets. It’s safe to say, property values have risen since then. The next study will be released in 2016 and is likely to show a median net work of $225,000 to $230,000 for homeowners and about $5,000 for renters. Why the decrease? Rents have been rising faster than home prices. Unlike a mortgage payment which build equity for the homeowner, a rent check subtracts money and does not add wealth to the renter. Thus, renters are losing out while owners are gaining.

With a 30-year fixed rate mortgage, a house purchased for $75,500 in 1985 would be worth about $220,000 this year, said Yun.  “Even had home prices not risen, the person would still have $75,500 in wealth today – on top of not paying any further monthly mortgage after 30 years,” said Yun.

Most people — 80% of those surveyed in the 2015 National Housing Pulse Survey — say buying a house is a good financial decision.

So tell your clients to stop worrying about whether now is the perfect time to buy. We already know that interest rates are low, and probably will be for the remainder of the year, and buying is a way to pay yourself, not your landlord.

Monica Mancano

Monica Mancano

REALTOR®, SRES®, MRP, AHWD
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