A new brochure, put out by the National Association of Realtors postulates that renting costs as much as seven times the price of home ownership. Now if that sounds as far-fetched to you as it does to me, you’ll probably want to read the newly edited NAR consumer education brochure that explains what they mean. Like many things that “require explaining,” this one includes its share of smoke and mirrors. Much of the difference is found in intangibles (at least as far as cash is concerned), such as inflation, appreciation in value, interest rates, etc. Nobody anywhere is paying a rent payment that’s seven times the cost of a house payment.
Now don’t get me wrong. I think real estate is the very best investment anyone can make (and I think it is the ONLY investment some people make.) There’s absolutely no doubt that owning a home (if you can find any possible way to buy one) is a much better idea than renting — anytime, anywhere.
What makes me crazy are the exorbitant claims they feel they need to make to get you to buy a home. I think most people would love to buy a home. I don’t think there’s anyone in America who would tell you they prefer to rent. It’s an economic matter. Believe me, if they could buy a home, they’d have already done so.
I think a brochure extolling the virtues of home ownership is a great idea (especially one that helps new buyers navigate the maze of securing financing.) These people would love a home. You don’t need to beat them over the head by making exaggerated claims, and you don’t need to make them feel bad if they can’t qualify. Just give them the facts and help them make a purchase.
If you would like to read more about why you should buy instead of rent, ask your realtor for a copy of the brocure. If she doesn’t have one, she can order one. This is a valuable read (notwithstanding the claims) and it will help you understand what you really give up while you continue to rent.
The title of the brochure is, “Why Rent When You Can Buy?” and if your realtor can’t find you one, you can purchase one at www.realtor.org/store
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