Is real estate the best investment? How does it compare with other economic trends? Shouldn’t I just invest in the stock market?
These are all questions you hear new home buyers ask when considering purchase of a property. There are of course social benefits to owning a home, but what about your long term financial stability? Three recent studies should put your nerves to rest.
RealtyTrac recently released a report comparing home price appreciation to wage growth over the last two years. The study revealed that home price appreciation has outpaced wage growth in 76% of U.S. housing markets during that time period.
And we all know the importance of home appreciation in determining the net wealth of most American families. Merrill Lynch just…
One of the main benefits to owning a home is that you are not a slave to rising rents. As a homeowner, you have the power to lock in your housing cost for the life of a lengthy mortgage.
In today’s growing Metropolitan areas like San Francisco and NYC, it’s easy to get caught in the Renter’s trap and succumb to rising rents as the landlord sees fit. The negative feedback loop occurs when increasing rents make it impossible to save enough for a down payment for a home.
The top 5 markets where renters have seen the highest increase in rents since 2009 are:
- New York, NY (50.7%)
- Seattle, WA (32.4%)
- San Jose, CA (25.6%)
- Denver, CO (24.1%)
- St. Louis, MO (22.3%)
Homebuyers who were able to purchase their home over the same five-year period…