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Living the American Dream

Homeownership is key

While renting can be attractive, homeownership stands the test of time. Photo credit: @2015 Nestiny Incorporated

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The idea of home ownership is still a part of the American Dream.

"Everyone should realize that unless you are living somewhere rent-free, you are paying a mortgage - either yours or your landlord's," began Steve Fryer, in an article entitled "Want to Increase Your Family's Wealth? Here's How!"

"Buying your own home provides you with a form of ‘forced savings' that allows you to use your monthly housing costs to increase your family's wealth."

Fryer, a VA and military real estate specialist for John L. Scott in Puyallup, has almost half a century of experience from which to speak. Of special interest, he has also completed the USACares training for those who work extensively with military clients.

"This provides me with special expertise in dealing with your situations and concerns," he wrote on his website.

To that end, he offered five reasons why owning a home is more beneficial than renting.

Reason One: You pay for housing whether you own or rent. While it is true that renting eliminates the cost of property taxes and home repairs, "every renter should know that all of the landlord's expenses are baked into your rent payment -- along with a profit margin," Fryer explained.

Reason Two: Buying a home is a hedge, or protection, against inflation. The value of a house and rent tend to rise faster than the rate of inflation. "When you own, your home's value will protect you from that inflation," Fryer continued.

Reason Three: There are still substantial tax benefits to owning. While Congress has recently passed a new tax reform bill that limits some of the deductions on homes, Fryer pointed to a recent study entitled "Homeownership and the American Dream"that states "...the mortgage interest deduction is not the main source of these gains; even if it were removed, homeowners would continue to benefit from a lack of taxation ...."

Reason Four: Owning a home is a form of "forced savings." What is meant here is that homeowners have a net worth that is 44 times greater than that of a renter. 

"As a matter of fact," Fryer stated, "it was recently estimated that a family buying an average-priced home this past January could build more than $42,000 in family wealth over the next five years."

Reason Five: According to Fryer, homeownership allows households to amplify any appreciation on the value of their homes by a leverage factor.

"A 20 percent down payment results in a leverage factor of five," continued Fryer, "meaning that every percentage point rise in the value of your home is a five percent return on your equity."

Fryer pointed out that whether one is looking for their first or fifth home, if the plan is to buy a home, Fryer stands ready to help home purchasers understand where prices are heading in the area and the benefits of owning a home.

"You owe it to yourself," he concluded.

For more information, contact Fryer at or call 253.266.2354.

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