Rent Vs. Own
Why would you buy when you’re perfectly comfortable renting?
Here is a list of reasons to consider.
1. Equity. One of the best ways to build your wealth is to invest in items that will generate equity. Real Estate is one of the safest and secure ways to do that. Equity in real estate is the amount of monetary value gained after you’ve purchased a house. This happens in a few different ways; as you pay down your mortgage, your equity grows because you are paying down your principal balance. Another way equity is built is by being in a market where the values of homes are going up. So, if you bought your house for $500,000 and the market prices continue to rise, then your house will grow in equity by being worth more just because the neighboring houses are selling for more. You bought for $500,000 but within a short time frame the neighboring houses start selling for $550,000...in theory your house is now worth $550,000 and you didn't have to do a thing but ride the upswing of a growing market. If you're in a growing market and you pay your mortgage on time you're gaining equity in two directions.
2. Security. Rents rise, mortgages don’t. You can’t be evicted out of your own home (unless you don’t pay your mortgage).
3. Independence and Pride of Ownership. Tired of the landlord telling you what you can and can’t do? Do what you want. You want pink walls? Go for it! You want a dog? Get on it! You want to plant a garden, a hedge, a sidewalk, a studio? What are you waiting for? Have the nicest house on the block and be a Rockstar of ownership.
4. Leverage. Walk into the bank and try to get a loan as a renter and fidget nervously hoping you qualify. Then, walk into the bank and get a loan where you can state that you own your home, and watch the magic happen. Also, if you ever needed money and you have equity in your home, you can pull out those monies and use it to purchase a car or pay bills or upgrade your house or whatever.
5. Tax deductions. You can write off all the mortgage interest. This has been a tremendous benefit for new home buyers. Interest is the biggest part of your mortgage for the first 15 years (of a 30 year mortgage). So take advantage of it.
6. Why make someone else rich and comfortable? Don’t you deserve it?
Start by talking to a lender to find out what you qualify for and what your credit score is. They will tell you how much house you can afford right now and if you need to do any tidy-ing up on your credit. Get a pre-qualification letter from them, then call me to start the search for what’s on the market in your price range. I’ll walk you through it every step of the way.
Here is a list of reasons to consider.
1. Equity. One of the best ways to build your wealth is to invest in items that will generate equity. Real Estate is one of the safest and secure ways to do that. Equity in real estate is the amount of monetary value gained after you’ve purchased a house. This happens in a few different ways; as you pay down your mortgage, your equity grows because you are paying down your principal balance. Another way equity is built is by being in a market where the values of homes are going up. So, if you bought your house for $500,000 and the market prices continue to rise, then your house will grow in equity by being worth more just because the neighboring houses are selling for more. You bought for $500,000 but within a short time frame the neighboring houses start selling for $550,000...in theory your house is now worth $550,000 and you didn't have to do a thing but ride the upswing of a growing market. If you're in a growing market and you pay your mortgage on time you're gaining equity in two directions.
2. Security. Rents rise, mortgages don’t. You can’t be evicted out of your own home (unless you don’t pay your mortgage).
3. Independence and Pride of Ownership. Tired of the landlord telling you what you can and can’t do? Do what you want. You want pink walls? Go for it! You want a dog? Get on it! You want to plant a garden, a hedge, a sidewalk, a studio? What are you waiting for? Have the nicest house on the block and be a Rockstar of ownership.
4. Leverage. Walk into the bank and try to get a loan as a renter and fidget nervously hoping you qualify. Then, walk into the bank and get a loan where you can state that you own your home, and watch the magic happen. Also, if you ever needed money and you have equity in your home, you can pull out those monies and use it to purchase a car or pay bills or upgrade your house or whatever.
5. Tax deductions. You can write off all the mortgage interest. This has been a tremendous benefit for new home buyers. Interest is the biggest part of your mortgage for the first 15 years (of a 30 year mortgage). So take advantage of it.
6. Why make someone else rich and comfortable? Don’t you deserve it?
Start by talking to a lender to find out what you qualify for and what your credit score is. They will tell you how much house you can afford right now and if you need to do any tidy-ing up on your credit. Get a pre-qualification letter from them, then call me to start the search for what’s on the market in your price range. I’ll walk you through it every step of the way.
