There may be a lot of reason a family decides to buy a home.
I think the 2 main reasons that people prefer owning their own home instead of renting are:
1.They want the opportunity to build equity.
2.They want a stable and safe environment.
Lets take a closer look at these two reasons.
Building Equity
I think most people agree that buying and owning a home is the essence of ‘The American Dream.’ Each month, your housing payments go toward owning your home instead of renting it; building your personal wealth and assets instead of someone else’s.
History has shown that homeownership is a clear path to wealth-building, with homeowners boasting a net worth that is multiple times higher than the net worth of renters.”
Family Stability
Does owning your home really create a more stable environment for your family? Lets look at two good reasons why tenants should feel less stable with their housing situation:
68% of property managers predict that rental rates will continue to rise in the next year by an average of 8%.
53% of property managers said that they were more likely to bring in a new tenant at a higher rate than to negotiate and renew a lease with a current tenant they already know. It is easy to see that renting will provide anything but a stable environment in the near future.
Bottom Line
Homeowners enjoy a more stable environment, and at the same time are given the opportunity to build their family’s net worth.
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