Make Your Monthly Housing Costs Work for You

Happy Monday!  I hope you had a great weekend.  We had some nice weather around here and are actually starting to see some blooming signs of Spring!  The market continues to show strong growth the first part of 2016 and all signs are leaning towards it being a GREAT Spring/Summer market. With interest rates still holding below 4%, it’s a great time to buy.

An article in Keeping Current Matters (KCM) I saw today really put in to perspective housing costs and how it relates to net worth… I wanted to share.


There are many young people debating whether they should renew the lease on their apartment or sign a contract to purchase their first home.  As we have said before, mortgage interest rates are still near historic lows and rents continue to rise.

Housing Costs and Net Worth

Whether you rent or buy, you have a monthly housing cost.  As a BUYER, you are contributing you YOUR net worth.  Every mortgage payment is a form of what Harvard University’s Joint Center for Housing Studies calls “forced savings.”

“Since many people have trouble saving and have to make a housing payment one way or the other, owning a home can overcome people’s tendency to defer savings to another day.”

The principal portion of your mortgage payment helps build your net worth through building the equity you have in your home.

As a RENTER, you are contributing to YOUR LANDLORD’S net worth.

For example, if you bought a home in January for $250,000 and just paid your mortgage over the next 5 years you would have increased your net worth by over $44,000 (based on price appreciation projected by the Home Price Expectation Survey).


Use your monthly housing cost to your advantage!

If you want to explore your options, give us a call.  We are here to help you with all your real estate needs.

Have a great week!

P.S. If you’d like to have these tips and updates and sent to your inbox every Monday, let us know!

About the Author
Meghan Henderson
Meghan is the Marketing Specialist for The Cameron Team and a published author of two young adult books. She also creates digital and printable planners and trackers, as well as coloring pages for Larkspur & Tea.