Wealth - Own vs. Rent (via Forbes)
Wealth - such a substantial difference between owning and renting.
Great comparison in this article from Forbes by Lawrence Yun, Chief Economist of NAR.
"The differences between buying and renting are massive. According to the Federal Reserve, a typical homeowner’s net worth was $195,400, while that of renter’s was $5,400. The data reflects 2013 and the next survey of household finances, which is conducted every three years, will be out in 2016. Based on what has happened since 2013 and projecting a conservative assumption of what could happen next year to home prices if we see only 3% price growth, the wealth gap between homeowners and renters will widen even further...a typical homeowner will be ahead of a typical renter by a multiple of 45 on a lifetime financial achievement scale.
Though there will always be discussion about whether to buy or rent, or whether the stock market offers a bigger return than real estate, the reality is that homeowners steadily build wealth.
We also know that not everyone can or should be homeowners due to numerous factors. That said, don’t overthink the matter of whether now is a good time to buy, or whether stock market returns will be better. The exact timing of a home purchase will have little financial impact in the big scheme of things. Just know that homeowners generally do come out ahead of renters in the long run."
Read the full article here. And give me a call if you want to discuss becoming a homeowner in our local market. 717-816-4116.
#homeownership #wealth #networth #exitparealtortim