The long asked question…when to buy? Is it better to buy or rent?
It’s probably the biggest financial decision you will ever have to make but the pride of homeownership and the benefits that come along with it are hard to pass up.
The rent you pay now adds up to a large chunk of money. For a clearer picture on how large the sum can be consider the following:
First, consider the lost return on investment. Real estate that you purchase may appreciate over time but rental payments will not. Let’s calculate what your monthly earnings could be if you invested your monthly rent. For example, if your rent is $800 per month and you invested that amount for 10 years and received a 5% return on investment you would earn $28,225. This doesn’t take into account that rent typically increases annually!
Let’s look at what you pay in rent. This money could be equity in your OWN home.
| Monthly Rent | 1 Year | 2 Years | 3 Years | 4 Years | 5 Years |
| $1,800 | $21,600 | $43,200 | $64,800 | $86,400 | $108,000 |
| $1,900 | $22,800 | $45,600 | $68,400 | $91,200 | $114,000 |
| $2,000 | $24,000 | $48,000 | $72,000 | $96,000 | $120,000 |
| $2,100 | $25,200 | $50,400 | $75,600 | $100,800 | $126,000 |
| $2,200 | $26,400 | $52,800 | $79,200 | $105,600 | $132,000 |
| $2,300 | $27,600 | $55,200 | $82,800 | $110,400 | $138,000 |
| $2,400 | $28,800 | $57,600 | $86,400 | $115,200 | $144,000 |
| $2,500 | $30,000 | $60,000 | $90,000 | $120,000 | $150,000 |
| $2,600 | $31,200 | $62,400 | $93,600 | $124,800 | $156,000 |
| $2,700 | $32,400 | $64,800 | $97,200 | $129,600 | $162,000 |
| $2,800 | $33,600 | $67,200 | $100,800 | $134,400 | $168,000 |
| $2,900 | $34,800 | $69,600 | $104,400 | $139,200 | $174,000 |
| $3,000 | $36,000 | $72,000 | $108,000 | $144,000 | $180,000 |
| $3,100 | $37,200 | $74,400 | $111,600 | $148,800 | $186,000 |
| $3,200 | $38,400 | $76,800 | $115,200 | $153,600 | $192,000 |
| $3,300 | $39,600 | $79,200 | $118,800 | $158,400 | $198,000 |
Let’s take a look at some of the other many benefits of being a homeowner:
- Paint the walls any color you want…or knock a few down
- Take advantage of tax breaks for homeowners (talk to your accountant about these benefits)
- You gain equity in the home, not your landlord
- Make improvements that benefit you
- Get the pet you’ve always wanted
- Throw wild parties, or not:)
- Control how long you live there
- Personalize the home to fit your style
- Never worry about having to move because your lease has expired
You can start your home search here, we can even send you a few mortgage lenders to contact. All these services are complimentary so why not see if now is the time for homeownership…you might not be able to afford NOT too! Have more questions? Give us a call/text at Melody 703-785-8203