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Study Shows Again Home Ownership to be a Better Way of Accumulating More Wealth

According to the latest national index report produced by Florida International University and Florida Atlantic University faculty, real estate market in the country remains in buy territory. Beracha, Hardin III and Johnson (BH&J) Buy vs. Rent home price Index has revealed that home prices climbed by about 5.4 percent in December 2015 as compared to the previous year. This price rise rate is the fastest since July 2014. Therefore, homeowners have a lucrative opportunity to accumulate more wealth, on average, than renters. BH&J examined the entire United States’ housing market, as well as the real estate market trends of 23 key cities and compared the data with, FAU reported. The researchers employed a horse race contrast between an individual who is buying a house and a person who rents a comparable quality residence and reinvests the money on bonds and stocks. Ken Johnson, a Professor at FAU and Real Estate …