Stop Renting & Start Building Your Own Net Worth

Posted by C C on Tuesday, September 15th, 2015 at 11:49am.

Are you debating whether you should renew your lease? Here’s why you may want to sign a contract to purchase rather than a rental lease.

Housing Cost & Net Worth

It’s a fact…you will have a monthly housing cost whether you rent or own a home, apartment, condo or villa.

If you are a buyer or if you choose to purchase a home on Hilton Head or in Bluffton, you are paying YOUR mortgage.

Every mortgage payment is a form of what Harvard University’s Joint Center for Housing Studies calls “forced savings.”

"Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”  

The principal portion of your mortgage payment helps build your net worth through building the equity you have in your home.

If you’re renting, you are paying YOUR LANDLORD’S mortgage.  In essence, you are helping build your landlord’s net worth.

Below is an example of the home equity that would be accrued over the course of the next four years if you were to buy a home by the end of this year; based on the results of  the Home Price Expectation Survey.

 

In this example, simply by paying your mortgage, you have just increased your net worth by over $34,000!

Bottom Line

Use your monthly housing cost to build your net worth, not someone else’s.  I am more than happy to explain the opportunities available in your market.

MARGUERITE CARVER, REALTOR®, GRI, CRS

Cell: (215)680-5650

MargueriteCarver@FoundationRealtyTeam.com

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