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Renting might work better for some people but from a financial standpoint, it’s definitely better to own than to rent.
According to the National Association of Realtors, a homeowner’s net worth is 45 times greater than a renter’s.
Another reason to consider buying instead of renting is that home values are on the rise. According to CoreLogic, home prices are up 7.2% over the last year here in Michigan. Going forward, home prices are predicted to increase by 6.4% over the next year. The national average is 5.2%, so Michigan is outperforming the national numbers.
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Home prices will only continue to go up, increasing homeowners’ net worth.
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According to ATTOM Data Solutions, homeowners who sold in the second quarter realized an average price gain of $51,000 since buying their home. That is the highest average price gain for home sellers since the second quarter of 2007, when it was $57,000.
In other words, homeowners in the second quarter of 2017 got an average return of 26% on the previous purchase price of the home. That is the highest average return on investment for home sellers since the third quarter of 2007, when it was 27%.
ATTOM’s report also shows that homeowners who sold in the second quarter had owned the home for an average of 8.05 years.
So, as a homeowner, your net worth is higher and, when you move, you have the opportunity to get a good return on your investment. You can’t get that when you rent a home.
If you have any other questions about owning versus renting or if you’re interested in making a move, just give me a call or send me an email. I would be happy to help you!
