Home Why Buying is Financially Better than Renting
November 30, 2016
Are you trying to decide if renting or buying is the best option for you? Although everyone’s situation is different, buying can actually be financially better than renting. Let me explain.
Cheaper in the Long-Run
The upfront costs of buying may be more than renting, but in the long-run, it may in fact be cheaper. (Click here to read my blog on saving up for that down payment.) Not only are you locked into a monthly mortgage payment (no more waiting to see if your landlord increases your monthly payment when you renew your lease), but the actual monthly payments may be less than what you’re paying your landlord, depending on where you live. In fact, a Trulia report found that it’s 37.7% cheaper to buy if buyers put down 20% on a home with a plan to stay 7+ years. Buying also guarantees that you can be in the home for as long as you want, meaning you can save on moving costs if your landlord ends up needing you to move, or you have to find a new place with a more affordable lease.
Check out these Gilbert homes for sale!
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You’re Essentially Paying Yourself
All the money you pay for rent each month goes to your landlord, while the money paid toward a mortgage payment goes into something you own. Yes, you’re also paying some interest each month, which doesn’t go to you, but everything else is going toward your equity. If you sell your home later, this is money that comes back to you (unless you’re upside-down in your home). If you’re really lucky and can sell your home for more than you bought it for, the extra money from the sell of your home can go into your pocket!
A Way to Build Wealth
In essence, buying a home is a way for you to save money (though not the most ideal way). Once you pay off your home, all that money that was going to the mortgage can be used to save and build wealth even more! Imagine not having to pay for your housing each month! Buying provides this opportunity whereas renting does not. Rent payment is never-ending.
Looking to get out of your rental and into a home? CALL/TEXT me today! 480-329-7489 Let’s go find your dream home!
Not sure if you’re credit is where it needs to be to buy a home? Click here to read my blog on different options.