5 Powerful Reasons to Own Instead of Rent

5 Powerful Reasons to Own Instead of Rent | MyKCM

Owning a home has great financial benefits.

In a recent research paper, Homeownership and the American Dream, Laurie S. Goodman and Christopher Mayer of the Urban Land Institute explained:

“Homeownership appears to help borrowers accumulate housing and nonhousing wealth in a variety of ways, with tax advantages, greater financial flexibility due to secured borrowing, built-in ‘default’ savings with mortgage amortization and nominally fixed payments, and the potential to lower home maintenance costs through sweat equity.”

Let’s breakdown 5 major financial benefits of homeownership:

1. Housing is typically the one leveraged investment available

Homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor. A 20% down payment results in a leverage factor of five, meaning every percentage point rise in the value of your home is a 5% return on your equity. If you put down 10%, your leverage factor is 10.

Example: Let’s assume you purchased a $300,000 home and put down $60,000 (20%). If the house appreciates by $30,000, that is only a 10% increase in value but a 50% increase in equity.

2. You’re paying for housing whether you own or rent

Some argue that renting eliminates the cost of property taxes and home repairs. Every potential renter must realize that all the expenses the landlord incurs (property taxes, repairs, insurance, etc.) are baked into the rent payment already – along with a profit margin!!

3. Owning is usually a form of “forced savings”

Studies have shown that homeowners have a net worth that is 44X greater than that of a renter. As a matter of fact, it was recently estimated that a family buying an average priced home this past January could build more than $42,000 in family wealth over the next five years.

4. Owning is a hedge against inflation

House values and rents tend to go up at or higher than the rate of inflation. When you own, your home’s value will protect you from that inflation.

5. There are still substantial tax benefits to owning

We know that the new tax reform bill puts limits on some deductions on certain homes. However, in the research paper referenced above, the authors explain:

“…the mortgage interest deduction is not the main source of these gains; even if it were removed, homeowners would continue to benefit from a lack of taxation of imputed rent and capital gains.”

Bottom Line

From a financial standpoint, owning a home has always been and will always be better than renting.

Ready to buy? Call/text us at 703-242-3975

Register For The Belt Team’s Seminar For Sellers

Next scheduled date: June 11th in Vienna or McLean 9AM to 11AM

Our next Seminar for Sellers will bring in our Dream Team of experts to ensure you sleep easy & make the RIGHT move!

  • Estate Planner
  • Financial Planner
  • Organizer
  • Lender
  • Contractor
  • Stager
  • Realtor

We’ll help you get answers to questions like these:

  • Do I need to sell before I buy? Or do I buy before I sell? How can I sell when I don’t have a place to go yet?
  • What do I need to do to get my home ready to go on the market? What can I skip?
  • Should I install new carpet or give a credit to the buyer so they can choose their own carpeting?
  • Does staging really matter? What does it cost?
  • Are there people who can help me organize?
  • How much of a mortgage do I qualify for?
  • How much will my home sell for?
  • I know we need to update the kitchen, but how much do we really need to do and who do we call?
  • And LOTS more!

Call Terry Belt & The Belt Team at (703) 242-3975 for further info.

Register For “Be A Boss! 10 Secrets of a Mega EA”

Be a Boss - 10 Secrets of a Mega EA

Presented by Christy Belt Grossman, COO The Belt Team                         

How You Can Stand Out From The Average Assistant – #TakeItToTheNextLevel

October 15th in the Training Room – McLean Market Center – 9AM to Noon

REGISTER HERE:

Learn how to up your game! Propel your team and your career to higher heights. Find out the difference between having a job and building a career!

Topics will include:

  • Mega Mindset
  • Paths to Growth
  • Leadership
  • Accountability
  • Ownership Mentality
  • Making Failing Forward Fun
  • Communication
  • Lots More!

This will be an interactive class for engaged learners. You will walk out with:

  • Ideas To Generate Income For Your Team
  • Ideas For Your 4-1-1 Annual Goals
  • An Accountability Partner
  • A Growth Plan
  • Ways To Leverage Numbers
  • Ways To Eliminate Squirrels
  • Confidence To Own Your Role
  • Energy & Strategies To Conquer The Chaos

ABOUT CHRISTY BELT GROSSMAN:

  • Chief Operating Officer The Belt Team20 years as Chief Operating Officer of The Belt Team, Top 100 Team with Keller Williams Realty since 2008
  • $55 Million closed/pending through Sept 15, 2015
  • Interviewed by Gary Keller at Mega Camp, 2012
  • Listed in Stefan Swanepoel’s Technology Report, 2013, “Top 100 Klout Scores of Individuals In Real Estate”
  • Panelist at Mega Tech, 2013 & 2014
  • Founder of the longest running EA Mastermind in KW
  • Passion For Riding Shotgun in the EA Role & Helping Others

“Kiss Your Landlord Goodbye” – Interactive Seminar

Homebuyer Seminars Northern VA

Special Millennial Edition Class for First-Time Homebuyers

September 30th at 6:30PM in McLean

Register here    Download Flyer

Today is a great time to enter the real estate market! Why throw money away on rent when you can be your own landlord? Freedom rocks. And so does putting money in your OWN pocket instead of your landlord’s! Mortgage rates are low (for now!) and you may even be able to pay less by owning than renting. Not sure how the process works? We’ve gathered these local experts to share their knowledge with you:

¨ Aaron Gagnon, Loan Officer, Apple Federal Credit Union

¨ Brad Pace, Loan Officer, EverBank

¨ Chris Melnick, Owner, Double Eagle Title

¨ Several local millennials who recently bought their first home

¨ The Belt Team, nationally recognized Top 100 Team with Keller Williams Realty

Here’s what the class will cover:

  • How much money do I need to save?
  • Could I actually pay less by owning than renting?
  • Do I qualify for a mortgage?
  • What would my payment be?
  • What about closing costs?
  • What about inspections?
  • Overview of the market.
  • Search tips & tricks.
  • Best apps to use.

Register FREE before Sept 15. Register here. Seating is limited.

(Note: If you cannot make one of our scheduled classes, we are more than happy to meet for coffee and do a quick, no obligation overview with you.)

Search for homes on our state-of-the-art site

Platinum Sponsor: Double Eagle Title

First Time Homebuyers“This was our first time looking for a home to own and Kevin really guided and took all of our requests and preferences to heart. He made sure all of our worries were alleviated from day one and we couldn’t have asked for a better agent to work with.”

Ben & Lara Kaplan

 

First Time Homebuyer Seminar - The Belt Team“As first time buyers we really appreciated that Tom Reilly respected all of our questions, no matter how elementary. If he didn’t have the answer, he got it for us, ASAP. We worked with another agent earlier in our home search, and Tom was much more attentive and helpful!”

Heather & Doug Roemer

Where Are Home Values Headed?

Keeping Current Matters” has provided us with some excellent information about where home values are headed. Whether you’re thinking of buying or selling a home in Northern VA – you’ll want to check what they had to say:
Home Values Going Up KCM

“Today, many real estate conversations center on housing prices and where they may be headed. That is why we like the Home Price Expectation Survey.

Every quarter, Pulsenomics surveys a nationwide panel of over one hundred economists, real estate experts and investment & market strategists about where prices are headed over the next five years. They then average the projections of all 100+ experts into a single number.

The results of their latest survey

  • Home values will appreciate by 4.1% in 2015.
  • The cumulative appreciation will be 18.1% by 2019.
  • That means the average annual appreciation will be 3.4% over the next 5 years.
  • Even the experts making up the most bearish quartile of the survey still are projecting a cumulative appreciation of 10.5% by 2019.

Individual opinions make headlines. We believe the survey is a fairer depiction of future values.”

FREE INSTANT Online Home Valuation

———————————————————————————————————————————–In addition to the info from Pulsenomics, we also know the government has indicated it likely that interest rates will rise. In fact, we have seen the FHLMC 30 year rate rise already from 3.84% in May to 4% in June and 4.09% in July. In light of the urgency to buy now, we are holding a special MILLENNIAL EDITION of our “Kiss Your Landlord Goodbye” Seminar.

Homebuyer Seminars Northern VA

Today is a great time to enter the real estate market!  Why throw money away on rent when you can be your own landlord? Freedom rocks. And so does putting money in your OWN pocket instead of your landlord’s!  

Mortgage rates are low (for now!) and you may even be able to pay less by owning than renting. Not sure how the process works? We’ve gathered these local experts to share their knowledge with you:

  • Aaron Gagnon, Loan Officer, Apple Federal Credit Union
  • Brad Pace, Loan Officer, EverBank
  • Chris Melnick, Owner, Double Eagle Title
  • Several local millennials who recently bought their first home
  • The Belt Team, nationally recognized Top 100 Team with Keller Williams Realty

Next Class Scheduled: Sept 30th 6:30-8PM in McLean

Register at: www.TheBeltTeam.com/Classes  (Register FREE before 9/10)

Parents: Are YOU your adult child’s landlord? Send them to our class. Invest in their future!

Here are some of the topics we will discuss:

  • Could I actually pay less by owning than renting?
  • How much money do I need?
  • Do I qualify for a mortgage?
  • What would my payment be?
  • Mistakes to avoid.
  • What about inspections?
  • Search tips & tricks.
  • Best apps to use.

Questions? Call Terry Belt & The Belt Team at (703) 242-3975

Register For Belt Team Real Estate Classes

 FreedomKiss

Your

Landlord

Goodbye” 

Special Millennial Edition Class for First-Time Homebuyers

Next scheduled date: May 2016 in McLean (6820 Elm Street)

Here’s what the class will cover:

  • How much money do I need to save?
  • Could I actually pay less by owning than renting?
  • Do I qualify for a mortgage?
  • What would my payment be?
  • What about closing costs?
  • What about inspections?
  • Overview of the market
  • Best apps to use.

Call Terry Belt & The Belt Team at (703) 242-3975 for further info.

Platinum Sponsor: Double Eagle Title

Double Eagle Title

Gina Clough and Chris Melnick Double Eagle Founders
Gina Clough and Chris Melnick                       Founders, Double Eagle Title