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5 Financial Reasons Why You Should Buy A Home In 2014

Written by on Monday, 03 February 2014 12:58 pm
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High demand and short supply in the rental market have driven rates up nationwide. Shaun Donovan, Secretary of Housing & Urban Development, says “We are in the midst of the worst rental affordability crisis that this country has known.”

The projected surge in rental housing construction and available units probably won’t be enough to drive the rental market in 2014. Rental affordability has been hit by lagging income growth and a lean job market.

Slow income and job growth have also affected the housing recovery. Homeownership rates will slow and normalize as mortgage rates are predicted to reach 5% by the year’s end and home prices are expected to increase by 3%.

The question of whether to buy or rent this year is not an easy one to answer. However, keep in mind that homeownership comes with major financial rewards you’ll miss if you rent. 

Factor in these 5 financial reasons for taking the leap into homeownership: 

  1. Increased Net Worth: Homeowners are worth 30x’s more than renters.
  2. Investment Benefits: You are paying for housing whether you buy or rent. Invest your dollars in something you own rather than paying a landlord.   
  3. Home Equity: Equity in your home can help pay for college, retirement, and major life events.
  4. Tax Benefits: Homeowners can deduct mortgage interest and property taxes from their income.
  5. Savvy Financial Habits: Owning a home means more financial responsibility and encourages better saving and spending habits. 

Local real estate markets, your financial status, and personal needs and goals will all affect your housing decision. Consult a financial advisor and your local real estate professionals to help guide you to happy and healthy living in 2014. 

Are you currently renting? 

What’s holding you back from homeownership?

Share your comments with me on Twitter and Google+

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Resources:

Keeping Current Matters

New York Times

Ric Edelman

Zillow

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Jessica E. Roberts
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4 comments

  • Comment Link Jessica Roberts Tuesday, 18 February 2014 12:38 pm posted by Jessica Roberts

    David thank you for the comments!
    There are many factors that go into the decision to rent now or buy now.
    Seeking the advice and guidance of a financial advisor and local real estate pros can help figure out which option is best.
    How is your local market looking? More people buying or renting?

    Report
  • Comment Link David Fyfe Tuesday, 18 February 2014 11:13 am posted by David Fyfe

    I think the choice of whether one should rent or buy often has a lot to do with the local market as well as many other personal financial and life situations.

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  • Comment Link Jessica Roberts Wednesday, 05 February 2014 10:00 am posted by Jessica Roberts

    I don't disagree that we are entering a seller's market this year. The question is whether those who are currently renting should continue to rent or buy before the end of the year.
    It's always a back and forth issue in the media isn't it! Best is to talk to your local real estate pro and see what is optimal for your situation.

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  • Comment Link Guillermo Parapar Wednesday, 05 February 2014 9:47 am posted by Guillermo Parapar

    The media is advising otherwise. In my opinion is time to Sell.

    Report
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