Homeownership Builds Wealth & Offers Stability

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I very much agree with the concept that owning your home builds stability in your family life.  The rental rates are rising so quickly here in Southwest Florida that it is hard to keep up with them and sometimes I wonder how the average wage earner keeps up with the expenses of their family.  At least when you own your home you know your mortgage payment will remain the same for the length of your mortgage and that every payment is going toward equity for you and your family.

I am not one of the 53% of property managers that will rent the property to someone who can pay more rather than working with the current tenants.  My owners and I do everything we can to keep a good tenant in place and most of my owners are accepting less rent per month on their annual rental than market value.  But there is a lot to be said for a tenant who is responsible, pays their rent on time and takes care of the property.  My owners appreciate that and work hard to keep good tenants in their properties even if it means making less income.

With interest rates and the stock market in the disarray they are in currently it pays to invest your money in a home for you and your family.  You can enjoy your investment and at the same time you are building equity.  Much better than buying a stock!

 

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?children_clipart

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.

Courtesy of Keeping Current Matters July 2016

I have a customer right now who has rented from me for 9 years and is now purchasing his rental property.  It is the best deal for him and my owner, she has made money on her investment and the family is able to stay in the home they have known for many years.  A win win situation for everyone!  Please give me a call if you would like to find out how you can turn your rental dollars into mortgage dollars.  There are lots of mortgages available that require little or no downpayment.

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and a home where you are building equity and stability.

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