Given all that has happened in the real estate and financial markets in recent days it is hard for the average person to determine whether buying real estate is a good idea.
Recent figures from the National Association of REALTORS reveal that, in fact, Grand Rapids, MI homeowners have gained significant equity in their homes over the last 20 years!
2007 figures show that those who purchased homes in the area 5 years ago average equity of $12,307 in their homes. Those who have owned their home for 10 years have equity averaging $48,435, 15 years have equity averaging $73,093 and those with 20 years of ownership have an equity position of $94,248. So, in fact, there is good news over the long term for homeowners. Additionally, those figures do not factor in the tax benefits which have been realized by those homeowners over the years of home ownership.
There is always a cost of living in any property, either rent, mortgage payments, or cash. Clearly the benefits of ownership outweigh those of renting since equity builds over time and the tax benefits help offset the payments and costs.