Since some areas of the country have seen their home equity disappear, I have had some customers convinced that renting is the only solution. The National Association of Realtors points out, however, that only a handful of regions have negative equity and the Northeast has fared very well despite the economy. The NAR data shows that owners' wealth exceeds that of renters by a 50-1 ratio overall and this is due to home equity. I have seen many a homeowner in the metro west of Boston areas gain as much as $30,000-$50,000 in equity even during the last two difficult years with its reduced home appreciation.
The main theme here is that a person who is financially secure with deposit money saved and enough to cover property, taxes, homeowner insurance and miscellaneous household expenses will do far better than their renting counterpart. A purchase of even a small home in a good area will offer significant appreciation over 3-5 years' time. People who rent for many years, if they are financially stable, really have nothing to show for all that money spent on rent. I educate my buyer clients on these matters and I am definitely sending the message to my now adult children. Once my girls are secure financially they will probably be one of the first of their group to buy a property because they have seen the return it brings.
If you would like to know of listings in your area, give me a call at 508-369-5131 or email at franklinmahomes@comcast.net.