64% of American’s prioritize home ownership because it is a good investment. This month we are talking about renting verses buying.. the numbers, as well as the financial and emotional reasons why someone would consider renting or buying.
This week I’m starting with the numbers because… well.. I like them best! Let’s look at renting first. If you were to rent for 5 years with a 1% increase in rent each year starting at $2000, you would have paid $147,422. Now granted, you did get a roof over your head, but at the end of the 5 years, will you even get your security deposit back?
Conversely, if you purchased a $380,000 home with 20% down at 3.875%, your monthly payment is approximately $1850. In 5 years time, you would have spent $111,000. Already a savings over renting. Now, at the end of 5 years, I have something I can sell. Conservatively, if that asset has appreciated 2.5%/year, you would walk away with $48,737 after paying off the balance of the loan, less closing and Realtor fees.
Is it worth $84,159 more to you to rent? When you compare these numbers and consider you might or might not get your security deposit check back? Well.. this is your opportunity to build multigenerational wealth!
Real Estate financing in a way that builds long term wealth is what our team does best! Want to learn more about how to utilize real estate in your investment plan? Give me a call today to get started! We want your success as much as you do!