Tuesday June 9, 2015
On the surface, renting can seem like a cheaper, short-term alternative. But it's actually costing you money, a lot of money. According to a recent Realtor.com article, the clock is ticking.
Your rent changes based on inflation. Your mortgage does not.
The days of low and stable rents are gone. Rents are on the rise and the landlord can change that rent every year, some as much as 25 percent. When you buy a home you have a set payment that will not fluctuate.
You'll lose about $19,000 every year you rent.
We've all heard that over the course of a 30 year loan, we save an incomprehensible amount of money ($200,000 according to the article)! Since 30 years may be a little too far into the crystal ball, let's break it down to one year - which is still thousands of dollars. You may think you're saving money renting, but in reality you're penalizing yourself when you stroke your monthly check to your landlord rather than your mortgage company.
Putting off buying a home is like putting off starting your 401K. Delay and you lose out on the compounding returns.
We are at a point in the economy where home prices and mortgage prices are rising and rents are skyrocketing. The longer you wait you are losing more year after year. Think of all the tax benefits you are missing out on? You not only can borrow money at continued low levels, but each year you can write off that interest and real estate taxes.
Don't waste another day renting! Visit one of our neighborhoods and our neighborhood sales managers will be happy to discuss with you the opportunities of home ownership. Call 800.325.3030 or email Kathryn to make your appointment today.