My New Blog

Why Rent When You Can BUY?

Yup, the cliché’ is true: Buying a home is one of the smartest financial decisions most people will ever make. Don’t take our 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.

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....

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

Source: VIP Forum, Federal Reserve Board