$111,750.....The Cost of NOT Buying a Home
"What's this house going to cost me?" is usally the first question potential homeowners ask. It's a good question. Another good question to consider is "What is it going to cost me NOT to buy a home?" . Buying your first home can be a scary thought. After all, it's a huge financial decision. However, it can be one of the smartest financial moves you can make. A home is not only a place of your very own to live and raise a family. It can also be a great investment and a tool to help you save for the future. Consider this example:
Average Home Sales Price in Baldwin County $230,000
Assume a 4.5 appreciation rate/year
Value of investment in 12 months $240,350
Value of investment in 24 months $250,700
Value of investment in 36 months $261,050
Value of investment in 48 months $271,400
Value of investment in 60 months $281,750
Total investment growth in 5 years $ 51,750
From the above example, using a modest 4.5% appreciation rate, a first-time homeowner can create a $51,750 "savings account" by just owning a home. Not to mention, there are incredible tax benefits offered to homeowners that no other investment allows. The sooner you buy your first home, the quicker you can begin establishing your own home savings plan. Also, don't forget.... if you had rented for 5 years you have not only given up any potential property appreciation but have also lined your landlord's pocket for $60,000 (assuming a $1,000 per month rent). That $60,000 plus the $51,750 you have missed out on by not owning a home totals $111,750!!!!!!
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