Study Again Finds Homeownership To Be A Better Way Of Producing Wealth

Study Again Finds Homeownership to be a Better Way of Producing Wealth | Keeping Current Matters

 

According to the latest Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index  homeownership is a better way to produce greater wealth, on average, than renting. The BH&J Index is a quarterly report that attempts to answer the question:

Is it better to rent or buy a home in today’s housing market?

The index examines the entire US housing market and then isolates 23 major markets for comparison. The researchers use a “‘horse race’ comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.” Ken Johnson Ph.D., Real Estate Economist & Professor at Florida Atlantic University, and one of the index’s authors states:

“The nation as a whole is in buy territory. Continued near record low mortgage rates, unsteady stock market performance, and rents (on average) now out pacing the cost of ownership (maintenance, taxes, insurance, etc.) all combine to favor owning and building wealth through home equity over renting and reinvesting in a portfolio of stocks and bonds.”

Dallas, Denver and Houston currently remain deep in rent territory but, “there is some degree of good news from these markets for homeowners as the cost of renting is now increasing at a faster rate than the cost of homeownership — reducing the advantage of renting over buying.”

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, so lock in your housing cost with a mortgage payment now. To Find Out More About the Study: The BH&J Index and other FAU real estate activities are sponsored by Investments Limited of Boca Raton. The BH&J Index is published quarterly and is available online at http://business.fau.edu/buyvsrent.

Monica is a motivated realtor specializing  in residential & investment buyers located in the following areas; Miami Beach,SurfsideBal HarbourBay Harbor Islands SurfsideSunny Isles Beach, Aventura and surrounding areas. Monica Posada uses advanced internet marketing to insure your property gets maximum exposure and holds a high value of ethics in her work to ensure the ideal scenario for everyone! For help with buying or selling a property call 305-785-1688!

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About Monica Posada,MSIRE

This profession has rewarded me with business and priceless relationships. The experience of over 11 years in Miami along with the awareness of what is happening in the market, guarantee that I will seek out the best real estate opportunities for my clients. You can expect accurate comparables and neighborhood statistics and will always make sure that our clients get the best property for their dollar regardless of how long it takes. Now as the sales manager for Real Living in Miami Beach, I train, coach and lead a professional real estate team, count on our company's amazing integrated suite of resources, which led it to receive an award by Entrepreneur magazine, "the Inman Innovator Award" and was named “The Most Promising New National Brand”. Our market research is specialized by property type and integrates cutting edge technology, local market trends, as well as regional and national developments to support property evaluation, pricing and positioning. Honesty and Integrity are the cornerstone of my career. I'm fluent in Spanish and English. Master Degree in International Real Estate (MSIRE) from FIU.(2015). Luxury Home Marketing Specialist (LHMS), TransNational Referral Specialist (TRS), Multi-million dollar producer, Member of the National Association of Realtors, Member of Greater Miami and the Beaches Realtor Association.
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