Rent vs. buy remains a debate fought by smart people on both sides of the equation!
This discussion is about why buying a home makes sense. And it doesn’t mean that renting does NOT make sense. It is all based on the individual!!
Using the Federal Reserve’s median household calculations the median household had $77,300 stored away in net worth. The Big Question is how much of that is due to owning a house? Here is the answer:
Based on this analysis, housing makes up more than 60% ($47,500/$77,300) of the median family’s cushion.
In terms of Median Net Worth, owning a house does matter!
That’s over a 30-to-1 net-worth advantage in favor of homeowners.
In practical terms this is very simple. Each month, homeowners are automatically squirreling away the principal portion of their mortgage payment — as opposed to the renter, whose whole rent is an expense.
If you are able, and it makes sense for your situation, consider the data and make a home purchase!
Please contact us to help you to sell your home and find the home of your dreams! We specialize in Laguna Beach, Newport Beach, Dana Point, San Clemente and our inland coastal communities.
Make it a great day!