Instead of selling home ownership, I point to the positive side of home ownership which I think is stability. You have some measure of control over your own home environment and are not living at the whim of a landlord. Home ownership is really about life ownership - being a part of a neighborhood and community, putting down roots.
Home Ownership is often about a stage of life when you want to raise a family, and be in a neighborhood with others that you interact with.
In the end, I believe home ownership is not about money. It's about a lifestyle choice.
Home ownership is cheaper. A lot cheaper.
If renters are paying 200 more a month in rent than they would on a mortgage, that adds up to $7,200 over three years - which is not short term but it is fairly quick. That's a down payment for some mortgages.
Let's do a few more exercises, class. Shall we?
I pay on average about $5 for a can of coffee. I sometimes add Starbucks into the mix, but you can get a coffee fix for pennies. What does that amount to? That's $60 versus $1,300. You give up Starbucks and a few treats, you've essentially paid yourself a non-taxed $3,720 over three years.
Over a three-year period, a prospective homeowner can save thousands. But the buyer has to sit down with a piece of paper and go over an analysis for themselves. It's a great exercise that in the minimum places the buyer on a path to budgeting and living within their means.
As others have noted, if you're buying because that will save you money, don't miss the intangibles. Homeownership represents stability, roots, nice neighborhood and life-long friends. Living on a quiet street with kids playing in the yard is a picture most enjoy. Porch swings and lovely evenings just enjoying the your back yard ...
A prospect who has not performed the analysis for themselves is not a good prospect. Someone who is disciplined and has their eye on that prize is the better customer. In Longmont, CO, you will be lucky if you can find a home. I rarely come across someone who is not interested in eventually owning.
As rents head higher, the math is compelling.
In essence, you don't sell onwership!
In reality the buyer BUYS what they need.
* Life ownership
* Neighborhood & community
* Being a part
Studies in pusuit of 'what makes people happy' have concluded that the happiest people are those with the broadest social (flesh and blood, not cyber) networks. Being part of a community, shariing your life with like minded people, knowing the fears and dreams of others who place trust in you are all part of being part of a community. A commitment to that community often begins with an investment.
One may add to that list:
You can't 'SELL' it. YOu only present the opportuntiy for those who have eyes that see and who purchase what they see. If you 'sell', which is the art of minipulation, the outcome is often resentment.
Best of success to you.
Annette Lawrence, Broker/Associate
Remax Realtec Group
Plam Harbor, FL
Lance R. King
King Realty Group