Why to Buy a Livermore Valley Home vs. Rent

new home checklistAs a Livermore Valley real estate agent, I often talk with people who aren’t sure whether homeownership is a smart idea. Some of them think that renting is the easier, more financially sound choice. I’m here today to explain why homeownership is the better option!

First off, the Federal Reserve recently released a study that found that 61.4 percent of a family’s net worth is in home equity. This means that a homeowner’s net worth is over thirty times greater than that of a renter. Specifically, an average homeowner has a net worth of $174,500 while an average renter has a net worth of $5,100.

That’s huge! As a renter, your money is spent on rent, and then it’s gone. You’ll never see it again. As a homeowner, your mortgage payments build equity, which allows you to access credit and invest in your  future. When you sell your Livermore Valley home, you’ll get the money back, if not more! In the past year, home equity has risen 30 percent, according to the Federal Reserve.

Here are more reasons to own a Livermore Valley home rather than rent:

  • Financial savings. Not only are you gaining equity when owning a Livermore Valley home, but you’re also saving money! The latest Trulia report is that owning a home is still 35 percent cheaper than renting a home over a long period of time. Mortgage rates would have to reach about 10.5 percent before renting became the better option. Right now, they are around 4.13 percent.
  • Tax benefits. Renters don’t get any tax benefits, but homeowners do! You can deduct mortgage interest and property taxes. If you work from home, you can write off many of your home expenses.
  • Freedom. There are non-financial benefits to homeownership as well, such as the freedom to decorate and maintain your home as you please. You can paint the walls what you want. You can hang décor wherever you want, even if it means puncturing the wall with a hole. You can choose when to repair a roof, or change a furnace, and you can choose the style and brand.
  • Community value. A House Logic infographic points out that homeownership affects community value and involvement. Homeowners are 16 percent more likely to join parent-teacher organizations, 1.3 times more likely to read a local newspaper, 28 percent more likely to vote and so on. Owning allows the Livermore Valley community to feel more permanent, more like home.

As you can see, there are many benefits to homeownership vs. renting! So, when you’re ready to buy a Livermore Valley home, contact me. As a Livermore Valley real estate agent, I can help you through the transition as smoothly as possible.

John Kurtzer
Your Livermore Real Estate Expert
RE/MAX Accord

Livermore Real Estate
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