Traditionally, a home purchase has been a great way to build wealth, especially if compared to the alternative of renting. Typically, this is true if you are planning on owning the home for more than five years. During the last five years there has been a drop in home value of a little more than 10 percent locally, so wealth building is not a sure thing, but traditionally, and over time, a home is a great investment.

Just recently, I sold a home in Eastridge that was originally purchased for $11,000 in 1956. The home sold for $130,000. After 30 years (depending on the terms of the original loan), the home would be long paid off. Even then, the monthly principle and interest would have been about $80/month. To buy the same home today, including taxes, insurance, principle and interest would be about $1,000/month. That same house would rent for about the same. If the rent goes up 5 percent a year, that same rent would be over $4,000/month in the 30th year. That same home (at 5% appreciation) will be worth over half a million at the end of the same period.

There are other advantages to home ownership, such as income tax deductions for interest paid, and of course the security that you are not at the mercy of a landlord. Improvements can be made to your own home, but that’s not possible or wise if renting.

There is a reason investors buy homes and rent them out.

Renting may be necessary if you can’t get a mortgage loan or if you are always on the move, but owning your own home is the traditional American dream.

We can help make that dream happen. Just let your Nebraska Home Sales REALTOR® know what you are looking for. We can help you qualify for a loan, so we know your comfort zone, and then we go to work.