Interesting Article from Realtor.com

"Ownership gives one a real sense of accomplishment. Or skip the whole accomplishment thingy and just lease."

Having just bought a car last summer for the wife to run the turkeys around in, I can understand the appeal of “leasing.” Depending on what your looking for, a lease can seem like a fantastic deal.  I mean we’re talking about driving off the lot in a new car for a reasonable down-payment and more than likely a very reasonable monthly payment.  So what’s the hitch? As this article points out in greater detail, it really hurts your debt-to income ratio. The full amount of the lease shows like a unpaid credit card balance on your credit report.  That in-itself can make qualifying for a home loan very difficult.  Better to keep your credit looking good and have the flexibility to enter into home ownership.  Rents are high these days and with a lack of housing inventory, they’re only going higher.  Would suggest it’s better to be building equity in a home and driving a used car.

'...and this home includes a heated garage.'

Wonder if the “car lease” thing is part of what’s holding back the Millennial crowd from buying their first house?  Read the other day that average age of first time home buyer is 37.  Pre-housing slump it was 27.  That’s half a generation. Figure at the end of a 30 year mortgage, one would be 67.  I don’t think anyone is retiring before the house is paid off.  Here’s hoping I make it to 67 eh?

http://www.realtor.com/advice/finance/is-your-car-lease-keeping-you-from-buying-a-home/?iid=rdc_news_hp_carousel_theLatest

 

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