Making a decision to own an Arizona home, has to come from the heart first. A safe place to raise a family, good schools, good curb appeal. Pride of ownership and home equity go hand in hand. Sure there is Tax advantages and forced savings or equity that makes a home more affordable then renting. The bottom line is if you are in a safe, desirable neighborhood, your patient, and don't do any crazy non traditional financing you have a good chance of winning.
Equity is built by paying down the mortgage, or if your home appreciates in value, or both.
Odeta Kushi, Deputy Chief Economist for First American, discusses this point in a recent blog post. She explains:
“Once you include the equity benefit of price appreciation, owning made more financial sense than renting in 48 out of the 50 top markets, with the only exceptions being San Francisco and San Jose, Calif.”
ATTOM Data Solutions, the curator of one of the nation’s premier property databases, just analyzed the typical home-price gain owners nationwide enjoyed when they sold their homes. Here’s a breakdown of their findings:
The sales of homes in the past 5 years has shown increased equity gains realized.
CoreLogic, another property data curator, also weighed in on the subject. According to their latest Homeowner Equity Insights Report, the average homeowner gained $17,000 in equity in just the last year alone.
Here are the seven major home price appreciation forecasts for 2021:
Most real estate experts and financial institutions are forecasting equity gains for this year. If home owners see another 5% again in 2021 that will give them another $15,490 through increased equity. Experts don't believe you can gain equity and wealth by renting an apartment.
As you are planning your move into real estate, moving up, moving down, moving into Arizona consider the wealth you can potentially build with buying vs renting in Arizona.