March 08, 2019
Rental costs are continuing an upward climb and you may find yourself wondering if signing a new lease is really your best choice? Perhaps you’ve been questioning the wisdom of paying someone else’s mortgage each month. If building financial stability is on your radar then the argument in favor of homeownership may be close to over for you when you consider these three factors:
- Real Estate may slow in gains during any given cycle but property values are generally always moving upwards steadily
- When you pay the mortgage each month you are decreasing your debt while increasing your net worth
- Every improvement you make to your home grows your equity value
While it is true that all investments come with some level of risk, home ownership is an investment that provides more than just financial considerations. The market may experience another bubble bursting moment like in the recent past, a house you own is a stable place not easily removed. Unlike stocks whose value could very well disappear overnight, or a rental with a lease that abruptly ends, an owned home offers a higher level of shelter, a safe place while you weather storms that may come.
In fact, you may actually find that equity built in your real estate investment could become a buffer against short term financial loss from riskier investments like stocks or bonds.
The rental market may provide a certain fluidity that you won’t enjoy as a homeowner, so if the ability to pick up and move at a moments notice is high on your list of priorities, owning might not be the right answer for you.
However, if the financial stability that often accompanies owning a home is something you are seeking to achieve, this would be exactly the right choice for you to make.
Many factors should go into making the leap from renter to homeowner and each one should be considered carefully. If you are considering the northern New Jersey area and specifically Essex County, as your local marketing specialist contact me to provide insight to assist you in making the decision that works best for you.