Tyler Minges Home Buyers Guide 2017 Home Buyers Guide | Page 7

A GOOD INVESTMENT | 4
BUYING A HOME: A GOOD INVESTMENT
45X
greater networth for a
typical homeowner
The National Association of Realtors’ (NAR) Chief
Economist, Lawrence Yun projected that in 2016
the net worth of a typical homeowner will be 45
times greater than a typical renter.
Think about how home values have increased
over the past 30 years. The median price for a
single-family home in the U.S. 30 years ago was
$75,500. In 2016, it was $220,000. So after 30
years—the typical length of a mortgage loan—a
person’ s wealth would include that $220,000, plus
they are no longer facing a mortgage payment
(or rent payment).
CINCINNATI’S RENT
GROWTH IS THE NATION’S
4TH HIGHEST
Rents in the Greater Cincinnati metropolitan area
are expected to rise 5.2 percent through August
2017, which is more than three times the national
average of 1.7 percent. 2
BENEFITS OF HOMEOWNERSHIP
Equity buildup (savings)
43%
have excessive housing
burden due to high rent 3
About 43 percent of renters in Greater Cincinnati
spend 30 percent or more of their monthly income
on rent. 6 In the city of Cincinnati, an estimated
48 percent of renters spend 30 percent or more
of their monthly income. The 30 percent figure
has traditionally been used as a threshold for
determining whether a person has an excessive
housing cost burden.
Tax incentives
Usually a good investment
More stable costs from year to year
Privacy
Pride in ownership
Strong community ties
Tyler Minges, HUFF Realty | BUYER’S GUIDE TO REAL ESTATE