The last generation of people bought homes or other investment properties. Then they moved out and moved up. They rented out their personal home or their investment properties and guess who they are renting them to? YOU! They made an initial investment and continue to build equity in their property by you making the payment.
How long have you been renting? How long do you plan to rent in the future? Take a look at the table below to see how much you will pay over the course or a year, 2 years, 3 years, 5 years, 10 years and even 15 years.
|Rent||1 year||2 years||3 years||5 years||10 years||15 years|
*This does not take into account the annual increase in rent so actual amount paid over time would actually be greater than the above values.
Now…what if you bought instead? How much equity would you have?
*4% APR, 30 years, no down payment, does not include taxes and insurance.
Visit this link to see more about market conditions: http://ambers757.housingtrendsenewsletter.com/. Homes are expected to increase 2.8% over the next year and will generally increase each year so actual equity will be higher than those listed above.
What if you decide to move in the future?
If you decide to move, you have 2 options:
- Sell it, make a profit and move on!
- Rent it out, continue to build equity in the home and purchase a new home.
Benefits of Owning
Building equity with increases in market and through making payments.
Mortgage payment stays the same from the first payment to the last unless you refinance.
You can make the home your own without having to ask permission. When you paint in a rental, you usually have to paint it back.
Tax incentives – Mortgage deduction, some closing cost deductions, and property taxes are deductible.
Continue to build great credit.
More control over other bills such as water, electric, and gas by being able to replace with energy efficient products.
Biggest Purchasing Myths Debunked
- My credit is not good enough – Most of the time it is good enough or it can be within 30-60 days by reallocating a payment or two.
- I don’t have time – Loans have been closed in as little at 10 days. While these are the exception, they are possible.
- I can’t afford it – Actually, many times it’s cheaper to own then it is to rent.
- I don’t have a down payment – There are loans and programs available so you don’t have to have a down payment.
- I don’t know how long I’ll live here so I can’t buy – So many people rent out their property’s when they relocated and continue to build wealth and equity. Sometimes, they even end up moving back into the area and then have a home to move back into.
If after reviewing all of this, you still think that renting is a better option, I am more than happy to help you find a rental that works for you.
If you would like additional information, please reach out to me on social media or fill out the contact form!