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Thinkpad Homeownership may be the American Dream, but it is not always
the best financial choice. According to a new brochure titled
"Don't Buy the Myths: Renting Can Be a Smart
Investment."
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Laptop Computer June 3, 2004 (AXcess News) Washington - Homeownership may be the
American Dream, but it is not always the best financial choice.
According to a new brochure titled "Don't Buy the Myths: Renting
Can Be a Smart Investment," many consumers actually end up paying
more to buy than they would have to rent.
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Desktop Computer Now consumers considering buying a house have a new tool to help
them understand the true costs of homeownership. "Don't Buy the
Myths: Renting Can Be a Smart Investment" examines the most common
financial misunderstandings about owning a house and offers a
series of "reality checks" for would-be buyers.
Notebooks "The best kept secret in the housing
market is that renting is often
the better financial choice," explains Douglas M. Bibby,
President of the National Multi Housing Council, which jointly
published the brochure with the National Apartment Association
(NAA). "Researchers estimate that nearly 20 percent of house
buyers would have saved money by renting, while another report
by Harvard University concluded that 'in many places, at many
times, and for many holding periods during the past 15 years,
renting made better financial sense than owning.'"
Lenovo "Americans today are busier, more mobile and less willing to
spend our limited free time maintaining a house. We know that
apartment living might better suit our
lifestyle, but we feel pressured to
buy because we are afraid that renting is 'throwing your money
away,'" explained Doug Culkin, Executive Vice President of NAA.
"This brochure gives consumers the confidence to choose the best
housing for them as well as the information they need to counter
all those well meaning people who keep telling them that they need
to buy a house."Advertisement
Hard Drive "There may be many good reasons to buy a house," noted Bibby,
"but most of them are not financial. The tax savings and investment
potential associated with homeownership are often overstated, while
the costs of owning and maintaining a house are frequently
understated."
Travelstar "Don't Buy the Myths: Renting Can Be a Smart Investment" offers
real -- and perhaps surprising -- answers to several of the top
homeownership myths, including:* Myth: I'll reduce my tax bill if I
buy a house. Reality: A majority of homeowners reap no annual tax
benefits from owning a house.
Gateway * Myth: Paying rent is throwing away money. Reality: For the
first five years of ownership, you are simply giving away your
money to a bank. Nearly one-third of all buyers move within five
years -- before they start building any real equity.
Laptop Parts * Myth: My mortgage payment will be less than my rent. Reality:
Your mortgage payment is just the beginning. The "hidden costs" of
ownership can add up to thousands of dollars a year.
Software * Myth: As an owner, my housing costs will stay constant. I
won't have to worry about rent increases. Reality: Your mortgage
may remain constant, but other costs, such as maintenance,
insurance and property taxes can go up significantly every year.
And if you have an adjustable-rate mortgage, your mortgage payment
itself can increase.
Hard Drives * Myth: Investing in a house is a safe investment. Reality: Even
in today's healthy housing
market, stocks and bonds often
still offer a better return.A copy of "Don't Buy the Myths:
Renting Can Be a Smart Investment" is posted on NMHC's web site.
Single copies are available at no cost by contacting NMHC at
202-974-2354. Bulk orders can be placed with NAA online or by
calling 703-518-6141.
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