March 8, 2018 | Rachel Foster


If you are like me, a (somewhat) recent college graduate with several thousand dollars in debt from student loans trying to afford these “big city” rental prices, wishing someone would have told me to save up money for at least 1 year for a 3% downpayment because it’s actually easy to do. After 6 months, I saved up enough for a downpayment and set myself up for a brighter and more equitable future.

Let’s take a look at the Pro’s and Con’s of each and at the end you can decide what’s right for YOU!


 Substantial tax breaks for homeowners
 Build Equity to use toward a future home upgrade
 Unlimited decorative freedom
 Can create rental income property for future
Home may lose value
Must pay maintenance, taxes, and insurance


 No maintenance costs
 Shorter time frame makes moving easier and less expensive
No equity built. Rent money is lost.
No tax benefits
Rent can increase
Little decorative freedom

Examples of the costs associated with buying vs. renting a home:


Home Sales Price: $280,000

Total Monthly Payment: $1,690
Principle & Interest: $1,363.00
Homeowners Insurance: $30
Taxes: $112
Mortgage Insurance: $100
HOA dues: $85


Rent @ $1,200 a month

1 year: $14,000
3 years: $43,200
5 years: $72,000

Rent @ $1,500 a month

1 year: $18,000
3 years: $54,000
5 years: $90,000

Rent @ $2,000 a month

1 year: $24,000
3 years: $72,000
5 years: $120,000

As you can see, your rental money goes towards someone else’s mortgage when it could be going to yours. You should also consider the possibilities of your future home being a great rental income if you don’t want to sell it.

If you are wanting to know more about what your potential mortgage payment would look like, reach out to me. I have a great sphere of trusted lenders that can give you additional information and get you pre-approved to buy a home!



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