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Get Off The Fence...

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  • 08.13.2014

Get Off The Fence...

Author: Dragas Team


“Households must consume housing whether they own or rent. Not even accounting for more favorable tax treatment of owning, homeowners pay debt service to pay down their own principal while households that rent pay down the principal of a landlord plus a rate of return." -Joint Center for Housing Studies, Harvard University
There's an echoed sentiment among some potential homebuyers who are straddling the Rent vs. Own fence-- they don't want to incur the cost of mortgage. Well, here's a reality check: whether you own or rent your home, you will be incurring some type of expenses for your residency. Knowing that you will be shelling out money either way, you may wonder what's the use of owning. Well, we're glad you asked. If you are a renter, there are a few things that are certain. One, your rent will increase. When you own a home your monthly mortgage is a lot less volatile over the course of 30 years. Two, tax breaks are not as plentiful as they are for homeowners. Three, as a renter you're paying into the equity of your landlord; whereas, homeowners are increasing their own home equity. Bottom Line? Don't fear homeownership. In the long run it is an investment. Head over to dragas.com today.