As rental costs continue their upward climb you may find yourself questioning the wisdom of paying someone else’s mortgage each month. Has the time come to tackle this issue for yourself? One of the traditional arguments in favor of home ownership rather than renting is because it is such an excellent way to build personal financial stability. This is not a bad argument when you consider the facts.

• Each month the mortgage obligation shrinks while your ownership investment grows

• Property value increases year over year fairly steadily

• Improvements made to the home add to the growing value of your investment

While home ownership can surely be painted as a rosy picture, watching your financial bottom line does come with a risk or two that should be considered as well. Like any other market, the real estate market may cycle into a downturn, which could decrease your investment. But that’s not the end of the story.Even in a downturn, a house still provides shelter from the cold, a cozy place to settle into each night and a safe place to weather storms that may arise. Owning a home is a longer term investment that isn’t likely to disappear overnight like the lease of a rental could. Equity in real estate can actually serve as a buffer against other financial loss risks, like short term stock prices or bonds you might invest in.

The rental market may provide a certain fluidity that you won’t enjoy as a home owner, so if the ability to pick up and move is high on your list of priorities, owning might not be the right answer for you. However, if the financial stability that often accompanies owning a home is something you are seeking to achieve, this may be exactly the right choice.Many factors go into making the leap from renter to home owner. Each one should be considered carefully and your * local real estate specialist* can provide insights to assist you in making the decision that works best for your lifestyle.