Homeownership Builds Wealth & Offers Stability

I am in the 47% of the property managers that will negotiate with the tenants I have rather than bring in new tenants at a higher rate.  My owners are always happy when they have a responsible tenant paying their rent each month and will usually give them a discounted rent to stay in the property.  Rents have gone up so quickly lately we are not able to raise the current tenants up enough per year to keep up with the rising rents.  However, I do agree that rental rates will continue to rise in the coming year.  We have so little inventory available in rentals which causes rates to rise; however, we have a large inventory of homes for sale which causes prices to drop.  This may be the perfect time to transition from renting to buying.  Give me a call and lets find out if you qualify for a mortgage!

Courtesy of Keeping Current Matters 2017

The most recent Housing Pulse Survey released by the National Association of Realtors revealed that the two major reasons Americans prefer owning their own home instead of renting are:

  1. They want the opportunity to build equity.
  2. They want a stable and safe environment.

Building Equity

John Taylor, CEO of the National Community Reinvestment Coalition, explains that those who lack the opportunity to become homeowners have a weakened ability to reinvest their wealth:

“We traditionally have been huge supporters of homeownership. We see it as a way to provide stability for households but also as an asset-building strategy. If you continue to be a renter, locked out of the homeownership arena, increasingly those things are further and further out of reach. They’re joined at the hip. They perpetuate each other.” 

Family Stability

Does owning your home really create a more stable environment for your family?

survey of property managers conducted by rent.com disclosed two reasons tenants should feel less stable with their housing situation:

  • 68% of property managers predict that rental rates will continue to rise in the next year by an average of 8%.
  • 53% of property managers said that they were more likely to bring in a new tenant at a higher rate than negotiate and renew a lease with a current tenant they already know.

We can see from these survey results that renting will provide anything but a stable environment in the near future. 

Bottom Line

Homeowners enjoy a more stable environment and at the same time are given the opportunity to build their family’s net worth.

Build your family’s net worth with a home of your own.  Stop paying your landlords mortgage at a higher rate and pay your own!


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