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www.RicaInsley.com | The Basics | Why its smarter to buy than rent
| The tax benefits help somewhat, but its the long-term gain in value thats crucial to building real wealth.
Buying a home is one of the smartest financial decisions most people will ever make.
Dont take my word for it. Take the Federal Reserves. Its Survey of Consumer Finances has consistently found a huge gap between the wealth piled up by homeowners and that accumulated by renters.
| 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 |
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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 -- the rise in the homes value over time.
The earlier you get in the game, the quicker you can get that appreciation working for you. The longer you wait well, the consequences can be stiff. You will always be poor! If you rent, youll always be poor, The longer you rent, the less likely you are to buy. You'll fall further and further behind.. Those who wait for the current housing boom to crash may be waiting a long time. Prices in the Greateer Wenatchee area have already plateaued and are already rising. Median priced homes $235,0000 have already gained 4% from last year. The National Association of Realtors says 6% annual gain is the norm nationally. Call Rica to get on the track to home ownership! www.RicaInsley.com
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