Regardless of present market conditions, home or property investment ownership is definitely more valuable than renting.
Historically statistics show property values increasing, as well as rent amounts. By paying rent, your monthly housing expense is still rising, while you lose on the opportunity to profit on home appreciation if you owned it. Even if you move every 3-5 or any other number of years, your equity can be transferred into buying your next home and thereby preserved and employed for the future growth. The only exception is if you buy high and are FORCED to sell for less in market (like presently) downturn, which happens to ca. 20-30% of property owners.
If you can't afford monthly mortgage payment for the home of your present choice that probably means that you're trying to live above your present means. It would be advisable to buy a smaller property, build some equity over time, and then buy a property of your dreams that you can comfortably afford.
There are other reasons in favor of home ownership that get frequently overlooked by renters, like:
1) level of living comfort
2) flexibility to customize living space
3) Paying down loan balance and building additional equity
4) Tax benefits from paying interest
5) Cash flow from rental properties
6) Opportunity to improve property and increase its value even more
7) Easier to obtain a home purchase loan than to rent since you can use up to 55% of your gross income to qualify for a loan, vs. up to 35% of your gross to rent a place with most landlords.
8) Your mortgage payment stays fixed for the time you choose to stay in that home (e.g 3,5,7,30 years) while rents increase usually every year or whenever your Landlord chooses to renew your lease.
Don't be too concerned how much real estate professionals make in any transaction, but rather with quality of service, expertise, and final value they provide to YOU in these transactions. If you work with us to find your next home, we do all the work for you absolutely for FREE!!
Contact us today!