While it may seem that you simply cannot afford to buy a home in the Dallas area, studies have proven that those who own a home rather than rent build their wealth much faster than those who rent homes, apartments, or condos. As Flower Mound realtors who want you to understand why buying is such a smart decision, we’ve provided a bit of “food for thought” below, to help you understand why renting is really like throwing money away.
Over the past 15 years, the amount of rent paid by those who rent has increased dramatically, while mortgages have stayed pretty much the same. Think about this: While a first-time homeowner spends approximately 15% of income on the mortgage, those who rent typically spend more than 26% of income on rent. That is 11% more, and over the years you can only imagine how much money it adds up to. Over a 10 or 15 year time period, those who own their homes are substantially wealthier than those who rent.
In addition, owning a home makes you eligible for tax benefits.
A study conducted by the Federal Reserve found that while renters have an average net worth of about $5,400, homeowners average a net worth of $194,500! This fact alone should be enough to make anyone consider purchasing a home. Homeowners also eventually pay off the mortgage and have no more payments, while renters continue to pay rent – month after month, year after year. Wouldn’t it be nice to live in a home that is your own, and eventually paid for?
Ultimately, it’s up to you to decide whether you want to amass wealth, or keep renting for the rest of your life. If you need help making your decision or need more facts, call the Flower Mound real estate agents at Team Nelson today!