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The Cost of NOT Owning Your Home

Wednesday, April 10, 2019   /   by Randy Leaf

The Cost of NOT Owning Your Home

The Cost of NOT Owning Your Home


The Cost of NOT Owning Your Home | MyKCM



Owning a home has great financial benefits, yet many continue to rent! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed.


Zillow recently reported that:



“In reality, buying or renting a home is an intensely personal decision, with emotional and even financial considerations that go beyond whether to invest in this one (admittedly large) asset. Looking strictly at housing market numbers, there is a concrete point at which buying a home makes more financial sense than renting it.”


What proof exists that owning is financially better than renting?


1. We recently highlighted the top 5 financial benefits of homeownership:



    • Homeownership is a form of forced savings.

    • Homeownership provides tax savings.

    • Homeownership allows you to lock in your monthly housing cost.

    • Buying a home is cheaper than renting.

    • No other investment lets you live inside of it.


2. Studies have shown that a homeowner’s net worth is 44x greater than that of a renter.


3. Just a few months ago, we explained that a family that purchased an average-priced home at the beginning of 2017 could build more than $48,000 in family wealth over the next five years.


4. Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment– along with a profit margin!!


Bottom Line


Owning a home has always been, and will always be, better from a financial standpoint than renting.

Salzman Real Estate Team ENGEL & VÖLKERS • LA - South Bay
Dave Salzman
1147 Highland Ave
Manhattan Beach, CA 90266
310-871-5314
310-545-2260
DRE# CalBRE#: 00952732

Based on information from California Regional Multiple Listing Service, Inc. as of September 30, 2020. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.
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