Why is it a smarter decision to buy a home than rent? Well, there are several reasons actually. In a Survey of Consumer Finances, the Federal Reserve has consistently found a huge gap between the wealth piled up by homeowners and that by renters. Check it out:

Average net worth of homeowners vs. renters
Annual income Owners Renters
$80,000 and up $451,200 $87,400
$50,000 to $79,999 $194,610 $25,000
$30,000 to $49,999 $126,500 $10,600
$16,000 to $29,999 $112,600 $4,240
Under $16,000 $73,000 $500

Source: VIP Forum, Federal Reserve Board

Home ownership builds wealth in two ways: through the forced savings of paying down a mortgage and through appreciation over time as the home value rises. The earlier you get in the game, the quicker you can have appreciation building. Those who wait, thinking the market will crash even further are missing the boat now. With exception to the "boom" we experienced in 2003-2005, history will show us in a normal economy, we can predict a generous 6% annual appreciation. Not bad when you consider that you earn zero appreciation from renting.

4 Keys to Profitable Home Ownership:

1.) You plan to stay put at least 3 years and preferably more. In most markets it can take 3 to 6 years for a home to appreciate enough to offset the costs of selling and moving.

2.) Be psychologically prepared. Home ownership means dealing with whatever comes up - from noisy neighbors to back-up piping. You can't just call the landlord to help or easily move like you can when you are renting.

3.) You have some extra savings. Home buyers who spend every dime they have buying house are inevitably blindsided by repairs, maintenance and all the other costs of owning a home. Then they go into debt trying to keep up with their current lifestyle. A good idea is a savings that is equal to at least 2 months of mortgage payments.

4.) You manage your money. The forced savings aspect only works if you can keep your hands out of the penny jar. Otherwise, it is easy to drain away your wealth with home equity loans or lines of credit. If you are the type of person who is living on credit cards and have know idea where your money goes every month, you probably need to start by learning how to manage your financing better, before you commit to a home purchase.

If you or someone you know is ready to talk about purchasing a home, please call us today. We have lenders on staff that can qualify you within minutes. Interest rates are fantastic and home prices are ridiculously low! Don't miss out, call us Today!