Often times I hear people say that they are just going to save up to buy a home by renting for a few years instead. Unfortunately they have been misinformed as to which of the two is most expensive. In fact a recent study by Trulia reports that buying a home is 38% cheaper than it is to rent! Those numbers are significant in themselves and yet it still doesn’t encompass all of the other benefits to being a homeowner versus renting. Not only can you paint your bedroom any color you choose or install a modern looking kitchen sink but not having to answer to anyone is a bonus all in itself.
Another way to look at the benefit of home ownership is choosing whether you would like to save up money for someone else or save it for yourself. This is essentially the question you need to ask yourself when you are considering renting. When renting you are helping another person pay off his or her mortgage so that when they choose to they can sell the home and retain the money. By paying for a mortgage you are in a way putting your money into a savings account for your later self. Hopefully you could eventually sell your house for a profit but even if you don’t you will still recoup a great deal of the money that you paid into the original mortgage.
The bottom line is that home ownership is one of the best things you can do to reduce your cost of living, give yourself freedom over your living space, and help provide for your future. All in all there is no real competition when it comes to renting versus owning your own home! If you are currently renting and are interested in learning the steps to home ownership we would love to answer any questions or concerns you may have. Feel free to call or email us anytime!