While a few renters manage to squirrel away money, the average American discovers that home ownership is a faster escalator to wealth. According to billionaire Warren Buffett, there are several reasons why home ownership is still the financially wise move to make. A recent article by cnbc.com points out that real estate is a valuable asset, especially for families and individuals buying real estate in Boulder County. Buying a home in Boulder makes a lot of sense because of the strong job market and attractive lifestyle that draws high-end buyers. An “oracle of real estate,” Buffett explains several reasons why home ownership is an escalator to wealth for most Americans.
Enjoying 30 years to pay off a loan
The 30-year fixed rate mortgage is an excellent and inexpensive way to borrow money for a home. At this time, interest rates are still low. Buffett tells reporters he took out a 30-year loan for a California home in 1971. He bought the home for about $150,000 and listed it recently for about $11 million. Buffett points out that if people buy a home at a higher interest rate, they can always refinance when rates dip down. Every time you make a mortgage payment, you essentially contribute to a forced savings account in the form of home equity.
Expressing yourself with personal decor
Another benefit of buying real estate in Boulder County include the personal freedom that come with owning your own place. Buffett says he does not plan to sell his Omaha, Nebraska home that he bought in 1958. After raising a family and creating memories, few people want to depart from their family home. When you rent a home in Boulder County, your landlord or property manager often controls everything from paint colors and landscaping to flooring and appliance selections. Renting often leads to anxiety and uncertainty about lease renewal and rent increases.
At Laura Guerra Real Estate, we help people with the rent versus buy decision in Boulder, Lafayette, Longmont, Louisville and other great communities. To find out more reasons why buying a home benefits you financially, please contact us.