Here is a great example of “Why Pay Rent When You Can Own?”
If you took out a 30-year fixed-rate mortgage for $150,000 and made monthly mortgage payments of $900. You’d pay $324,000 in mortgage and interest payments over the life of the loan. And after 30 years you’d own a home with an appreciated value potential of $364,000 (at 3% annual appreciation). Keep in mind: Appreciation rates vary greatly based on local conditions.
Compare that to paying $800 per month in rent over 30 years! Even if your landlord improbably never raised rent, you would still spend $288,000 and own nothing!
In the long run, you’re probably losing money by renting instead of owning your own home. So wouldn’t you rather be building up equity in a home instead of giving your hard-earned money to your landlord?
I’m not sure if you know this, but one of the main advantages of owning your own home is that you become eligible for various tax benefits.
By the way, the financial net worth comparison, according to the U.S. Federal Reserve Board of Consumer Finance, the Average net worth of renters = $4,000; the Average net worth of home owners = $184,400.
Let us know what you think or how we can help.