Renting vs Buying: the breakdown

You are a recent college graduate, saddled with student loans and a monthly rent payment that is much higher than you ever expected.

Or… You have been a long-time renter because you never thought you were able to afford a mortgage.

Or maybe you were a homeowner who either sold or lost their home and have been renting ever since.

To Be A Renter…

Regardless of which category you fall into, the one common factor is- you are a renter. Not an owner. And while the concept of owning a home can be quite daunting and even downright scary, it does not need to be a foreign concept. While owning a home was commonplace for the “baby boomers,” it has become much less so today. In fact, many view owning a home a huge luxury.

 

There is one thing to keep in mind though: what is the more financially responsible decision in the long run?

Yes. It may have been the “cheaper” option to rent, at one point. However, now it is actually significantly cheaper to go through the mortgage process… And buy a home. Here are the statistics.

The percentage of income needed to buy a median home in today’s economy is 15.8%. That doesn’t seem too high, does it? Wait for it… The percentage of income needed to afford median rent is 29.2%.

It is a significant difference. So while it does sometimes seem like renting is the cheaper option, there are many first time (or fifth time) homeowners who pay significantly less for their mortgage payment each month on an actual home, backyard included, than many people pay for a just-1,000sq ft apartment.

Is it your time?

Do you think you are ready to take the plunge? Or at the very least begin exploring your options?

The only way you will ever know what your options are, if owning a home is in your near future, is by asking. Pick up the phone. Visit us online. Either way- talk to someone about your situation to find out what ALL of your options are, before you sign on for another year on your lease.

 

Total Home Lending

 

 

Natasha Mason

2018-03-16T14:48:06+00:00