BUYING vs RENTING

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!

BUYING

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

RENTING

No maintenance costs
Shorter time frame makes moving easier and less expensive
Flexibility
- 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:

BUYING:

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

RENTING:

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!

Best,
Rachel

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To Buy or to Rent....Hmmm?!

BUYING vs RENTING

BUYING

RENTING

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

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To Buy or to Rent....Hmmm?!

BUYING vs RENTING

BUYING

RENTING

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

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