The Truth Behind Renting Vs. Purchasing
There has always been a discussion surrounding Renting Vs. Purchasing, and the benefits of homeowning.
There is a lot saved (and made), here's why:
- Average Rent Cost for a 1 bedroom-$1600/Month
- Average Rent Cost for a 2 bedroom-$2500/Month
- Average Rent Cost for a 3 bedroom-$3400/Month
- Improvements on home are upon owners discrepancy
- The Tenant is Essentially paying off the Landlords Investment
You have been leasing a 1 bedroom for 2 years at $1600/month.
24 (Months) x $1600 (Per Month) = $38,000 Rental Costs in 2 Years
- 3-5% Down Payment option for first time home buyers
- Can lease out bedrooms and/or entire property to assist in paying mortgage
- Ability to make any type of changes (Rehab, Upgrades, Etc.)
Purchase a home or condo for $400,000, you are approved, and plan to put 3% down for down payment
$400,000 (Home Cost) x .03 = $12,000 Down Payment @ 3%
x .05 = $20,000 Down Payment @ 5%
x .10 = $40,000 Down Payment @ 10%
With some cash put aside, there is no contest here. Not only will purchasing SAVE the consumer money, but you can also MAKE money while owning. Yes, there are many reasons as to why renting may be the best option for you at this time, but if you do plan to stay long-term, or want to make some extra money building an investment portfolio, consider purchasing.
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