Hi there readers! This is my pilot blog, I hope that every article captures your interest. Every week, I will be coming up with an interesting topic (I hope!) divided into 5 parts. Please follow my blog, there will be a lot of information and helpful tips for you! This week, I've chosen to talk about the biggest question in everyone's mind - Is it better to rent or own a home? If you have the capability to purchase a property, would you invest? Or would you rather rent? At this point in time, is it wise to put your hard earned money in a real estate investment? Kindly read the succeeding articles and you might come up with a decision by the end of the week.
As long as I can remember, owning a house has been a part of an "American Dream". Actually, most of us dream of having a successful career, a happy family and of course a roof over our heads that we could call our own. For most of us, owning our own house will be a dream come true. However, big percentage of the US population still chooses to rent a place compared to buying their own house. There are certainly advantages and disadvantages on both buying and renting your own home. Now, the big question is..... Is it better to rent or to buy your own house?
We often hear that the home is our "biggest investment". Looking at it financially, owning a home is generally more profitable over the longer term than renting. Paying for monthly mortgage will stay fairly constant all throughout your payment term, especially with a fixed rate mortgage. While if you rent, your monthly rental will most likely go up every one or two years. And you will stop payments at some point when you buy your own place as oppose to rental payments being endless. Homeowners can also take advantage of the real estate appreciation. If you stay in your home for 10 years or more, the property will increase its value. Some people use their home equity to invest for an even greater return. Others choose to sell the property and use the proceeds to buy a smaller house and use the extra money from the sale to supplement their retirement income.
A survey done by the Pew Research in May 2010 said that 80% of the homeowners surveyed believe that a home is "the best long term investment" they can make. Even if 48% of the homeowners in the survey said that their property is valued less than what they purchased it for because of the recession. They are still optimistic that the value of their real estate property will increase soon.
Next topic, we'll talk about the home value appreciation.
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