Why renters should buy homes!

The Advantages of Owning a Home.
Most renters dream about owning their own home. Homeownership is the embodiment of the American dream. What renters may not know, however, is that if they can afford to pay rent, they can probably afford a mortgage. Indeed, ERA Mortgage has helped thousands of customers get the financing they need to become homeowners.Homeownership provides long-term financial benefits, including the ability to accumulate wealth.
According to the National Association of REALTORS®, increased home value is one of the surest paths to wealth accumulation, particularly for low and moderate-income households.
Here’s an illustration of the advantage of buying versus renting. If a family pays $1,100 per month in rent today, over the course of five years the cash outlay would be $70,081, assuming a rent increase of three percent per year, on average. At the end of five years, that family’s wealth accumulation is zero.
In contrast, a household that puts $10,000 down on a $200,000 home and makes monthly mortgage payments of $1,248 would accumulate $37,643 in equity over five years.* The total cash outlay for the homeowner is $86,180, which includes the $10,000 down payment, but the resulting net worth is substantial — and probably actually more than $37,643, since the calculations do not include possible tax advantages.
**In addition to wealth accumulation, there are other benefits to buying a home. Homeowners enjoy an added degree of financial security, since they have the option of tapping into the equity of their home in case of emergencies. Most people who purchase a property feel pride of ownership as well as a sense of belonging in a community in which they have a financial stake. Last, but not least, is that great feeling of individual autonomy — it’s your home to decorate, maintain and improve the way you want!