Many people who currently rent are under the impression that they cannot buy a home. Their common arguments are that they do not earn enough to get a mortgage or they are unable to save the necessary down payment. And this is why they cannot participate in the American Dream of owning their own home.
And to this I say …..
There are numerous ways to purchase a home with little or no money down. Don’t believe me? Call me, Art Reiman – Realtor – and I will be happy to explain a few. My cell number is 732-598-7700.
As to the down payment monies? In the past I have written a few blog posts that address that situation. You can read them at www.55plusinmonmouth.com/blog/. I will give you a hint – maybe the seller will pay some of the closing costs.
So, I believe that almost anyone can buy their own home, if they really want to. And it will probably cost less to pay the mortgage and taxes than to rent a similar home. So now let me talk about why it is in your best interests, financially, to own a home.
Studies have shown than, on average, a homeowner has a net worth that is 44 times greater than someone who rents. Here are a few reasons why.
The average priced home purchased this year should be worth almost $50,000 more after five or six years. Please tell me something. If you were to take the cash necessary to purchase that home, let’s say $15,000, is there someplace besides Atlantic City where you could turn $15,000 into $50,000 and live in that investment?
When you pay a mortgage you are building equity. This is a form of forced savings. By paying rent, you are building the landlord’s equity.
Currently there are tax advantages to owning a home which will not help if you are a tenant.
When you have a mortgage, your monthly housing costs are fixed. As a tenant you are subject to rental increases at the landlord’s discretion.
Your monthly housing costs in terms of the mortgage payment and taxes will probably be less than if you were to rent a similar home.
If you are still renting, please call me to discuss how you can get started on the path to living the American Dream!