Owning A Home Still Builds Wealth Over Renting

Cecilia * Andrew * Judy * Diane * Rich * Cindy


Homeownership still pays. Many ask if buying a home right now vs renting is a good idea due to drops in pricing and worth. The answer is clearly yes. Down markets are typically the time to purchase. Getting a home today at a discount and locking in a low interest mortgage along with obtaining the $8,000 federal tax credit for first-time home buyers, it's definitely the time to buy a home. Home equity builds over time. While many may be upside down at the moment, owing more on their home than it's worth, statistics show that over time, (5,10,15 and 20 years) that owning a home builds wealth compared to renting. The goal to building equity and wealth in a home is to be prepared to live in the property at least 5 years and hold on to it while markets are low. Over the years, homeowners build wealth 50-to-1 compared to renters. The data to the left clearly shows that owning a home remains the largest store of wealth for the average household, even when the housing market is buffeted by rocky years.