Do you remember the New Albany Condo I advertised in last week’s email?
I had 20 buyers visit my open house, we received 3 offers above list price, and 2 agents called me with eager buyers after a contract was signed.
There’s a lot of demand for affordable homes and condos for first time buyers.
There’s a good reason why: owning is less expensive than renting and it builds wealth.
You Could Save $450 Per Month
![](https://i1.wp.com/susannenovak.com/wp-content/uploads/2019/01/home-vs-rent.png?fit=1024%2C683&ssl=1)
If you would purchase a townhouse like the one above for $175,000 (that was the list price) with 10% down, you monthly payment including principal, interest, property taxes and insurance would be $1,138 per month (interest rate of 4.62%).
The estimated monthly rent is $1,599 – which is substantially higher.
Monthly rents have increased much faster than mortgage interest. Here’s a chart from the Census Bureau that shows how the average rent has changed over the years.
![](https://i1.wp.com/susannenovak.com/wp-content/uploads/2019/01/median2.png?fit=1024%2C479&ssl=1)
Why Homeowners Are Richer Than Renters
According to a study by Harvard University the net worth of homeowners is almost 48 times higher at age 65 than for renters (see below).
![](https://susannenovak.com/wp-content/uploads/2019/01/net-worth.png)
You can see that the average net worth of home owners is $319,200, while the net worth of renters is a mere $6,710.
Owning a home is a very good investment. There are 2 ways how home owners increase the equity in their homes:
- They pay off principal on their mortgage. It’s very little at the beginning, but it adds up over time. If you get a 15-year mortgage and you live in your house for 9 years (that’s the average time Americans stay in a home) you build a lot of equity (= net worth).
- Home values will likely increase. Since 2012 Columbus home values were up by 36.4%. That results in a substantial gain in net worth.
![](https://susannenovak.com/wp-content/uploads/2019/01/chart-dub.png)
If you keep renting you will pay your landlord’s mortgage! Isn’t it time to increase your OWN net worth? Call or text me at (614) 975-9650!