There are some people that have not purchased a home because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize that, unless you are living with your parents rent free, you are paying a mortgage - either your mortgage or your landlord’s.
As The Joint Center for Housing Studies at Harvard University explains:
“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return.
That’s yet another reason owning often does—as Americans intuit—end up making more financial sense than renting.”
Freddie Mac,explains another benefit of securing a mortgage vs. paying rent:
“With a 30-year fixed rate mortgage, you’ll have the certainty & stability of knowing what your mortgage payment will be for the next 30 years – unlike rents which will continue to rise over the next three decades.”
As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to have equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person with that equity.
The graph below shows the widening gap in net worth between a homeowner and a renter:
Whether you are looking for a primary residence for the first time or are considering a vacation home on Lake Murray or the shore, owning might make more sense than renting since home values and interest rates are projected to climb. Whenever you are ready, I am just a phone call away!
Melissa Dille is a Real Estate Professional with EXIT Midlands Realty in Chapin, SC. She has been assisting clients with purchasing and selling their homes in the Columbia, Irmo, Lexington, Chapin and Newberry areas. Feel free to call her with any of your real estate needs or questions at 803-315-1940, or feel free to email her at Melissa@scexit.com.
Author:Braden Campbell Phone: 803-609-7641 Dated: July 28th 2015 Views: 1,111 About Braden: Let me start off by saying how proud I am to be a part of the SC Exit Realty family. After being ...
Chapin, SC is known as "The Capital of Lake Murray" and with good reason. The residents of Chapin enjoy a relaxed lifestyle with the convenience of the city. Columbia, SC is just a quick 20 minute drive and shopping is even closer.You are embarking on an exciting journey, be sure that you find agents that will take time and share your enthusiasm during this process.
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