The market will change things, for better or worse

Dated: December 13 2020

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Many people who rent their home anticipate buying later in life, after they have had the chance to build up a stronger financial base in their career. They would like to buy in the same area where they are renting, because that’s home—but the engine that causes prices to rise works against them. Rent increases take a share of their growing income, and make it more difficult to save for a down payment. When they decide to stop pouring money into rent that doesn’t generate a return, and buy a home, they can find themselves priced out of their own neighborhood.

Those who buy property instead of renting experience the beneficial side of the same inflation engine. Protected by a fixed-rate mortgage, they see monthly payments that at first seemed uncomfortably high turn into a bargain over time. As the equity in their home increases, they may discover that they can trade upward into a nicer home or better community. They can stay as long as they like in a home that enhances their financial well-being.

This is a real phenomenon, but it’s almost imperceptible, because it plays out slowly, like the growth of a tree. Decisions we make today can determine whether the tree leads to a shady spot to call your own, or just cracks in the sidewalk.

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DAVID DUNLAP

As a residential real estate executive with an extensive background in corporate marketing, I am able to apply unusually strong skills in marketing communications, e-marketing, strategic planning and ....

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