Renters today must endure scarcity, steadily rising rents and the prospect of future housing uncertainty. Check out this graphic which explains the financial benefits of owning versus renting.
What does this mean to you? As an example, on a $500,000 purchase with a 3.5% down payment loan and the associated initial cash outlay, in just under four years, a home buyer is just about even with a home renter in terms of cash outlay.
Yes, just under four years, it’s a break-even point.
The home buyer has spent almost exactly the same as a home renter to this point. Here is the big difference though. The home buyer invests in a home they personally own versus paying down someone else’s mortgage, goes on enjoying a set monthly payment, and never having to move unless they choose.
And the cherry on the top? The home buyer gets to reap the benefits of cash appreciation via equity built over time, which the home renter will never have.
If you have considered helping a loved one purchase, this graphic should help you understand the waste of money renting presents.
If you yourself would like to know more about low-down loans, receive an estimated cost sheet, discuss seller-paid closing costs, get connected with a lender or just chat about this concept, we are always here for you, whenever you need us.
Sharon Currie is a Realtor and operations manager for the Betsy Hamilton Real Estate Team. Contact her at sharon@betsyhamilton.com
Weighing the costs and benefits of buying vs. renting?
