Rent vs Buy - that is the question.
We've uncovered 3 great reasons why it is better to buy in 2020. So stop paying your landlord's mortgage! It's time for you to be your own landlord.
Our goal for 2020 is to help 100 families Buy or Invest in Real estate and these are 3 key reasons why we are so passionate about helping our clients achieve this goal.
1) Fixed payments
Did you know that most mortgages offer fixed interest rates and fixed payments for the life of the mortgage? We called these fixed rate mortgages and they essentially give you a fixed rent amount for the life loan. A study by the National Association of REALTORS shows that while initial mortgage payments may be higher than rent for a comparable unit, within 3 years the mortgage payment will be cheaper than the rent payment once mortgage interest deductions are factored in. Even better, part of the mortgage payment is applied towards principle meaning you are actually adding equity to your home every month.
2) Build Wealth
There are only a few ways to build wealth. The most attainable way for most is Real Estate. According to the Federal Reserve, as reported by KeepingCurrentMatters.com, the average wealth of a home renter is down to $5,200. The Average net worth of a home owner is up to $231,400. A portion of mortgage payments are used to pay down your principle balance and property is consistently shown to appreciate in value over time. In the Boston area we have seen consistent gains, in some areas of more than 100% over the past 10 years.
3) Personal Pride
Many sources cite personal pride and a feeling of personal achievement to be key factors in their decision to buy. Owners can paint their walls, renovate their kitchens and bathrooms and make improvements that affect their lifestyles and preferences. Many times these improvements also add value to the property. Home owners are also more likely to be involved in their community.
These are great reasons why you should buy real estate. Let our agents help with the how. Call 617 670 1111 or email us today to find out more!