Why Buying a Home is the Best Investment you can make

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Although the market is seeing some decline recently, people should not forget that investing in real estate, buying a home more specifically, is still the best way to accumulate wealth. With real estate, appreciation is your best friend, and will in turn increase the value of your home significantly over time (except in very rare cases). The biggest problem is not prioritizing homeownership .The way I see it, renting drains your money, while buying increases your equity. “The average homeowner to this day is 38 times wealthier than a renter”. So before you completely talk yourself out of the possibility of owning a home, sit down and really look at your finances, see what you can and cannot afford. Your first home doesn’t have to be your dream home, and it most likely won’t be. However, it is always best to start small.

“A good rule of thumb is to make sure your total monthly housing payment doesn't consume more than 30 percent of your take-home pay”. Furthermore, try to give as much of a down payment as you can, with 10% being the minimum. The truth of the matter is that "you aren't really in the game of building wealth until you own some real estate”.


Taken from an article written by Kathleen Elkins from CNBC. http://www.cnbc.com/2016/12/30/self-made-millionaire-buy-a-home.html

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