Buying a home can be scary, overwhelming, thrilling, exasperating, and inspiring all at once, but the feeling of
home-ownership trumps them all.
Which is why;
It Still Makes Sense To BUY VS RENT!
To show you the benefits of owning your very own home, i will be doing a 2 part blog series. The first blog post will be about renting statistics and where YOUR money goes, and the second part will be the essential Information on the benefits and perks of home-ownership. An owner-occupier (also known as an owner-occupant or home owner) is a person who lives in and owns the same home. It is a type of housing tenure. The home of the owner-occupier may be, for example, a house, apartment, condominium, or a housing cooperative. The immovable property of the owner, which includes the home and the land upon which it sits, is known as the real estate.
FIRST lets talk about a couple fun rental facts!
Nearly 1/3 of all households rent
Baby boomer children-Echo boomers
With that being said, let’s take a closer look at home prices:
- Despite National Headlines,
Home Prices Tend to be Localized
- Housing Prices Are Tied to Job Market
- If Local Job Market is Weak –
Local Area Prices May Be Lower As Well
Now for the fun facts about RENTING!
Renting is an agreement where a payment is made for the temporary use of a good, service or property owned by another. A gross lease is when the tenant pays a flat rental amount and the landlordpays for all property charges regularly incurred by the ownership from landowners. This system is used in case of washing machines to handbags and jewelry.
Renting Costs a Lot – A Whole Lot!
Now remember, these are ONLY assumptions:
- $1,500 Monthly Rent Payments
- Landlord Increases Rent 5% Yearly
- Five-Year Costs = Nearly $100,000!
- Costs to Improve…GONE!
- Oh yeah, your landlord thanks you
- Overall Costs…Too Painful to Look At
Renters! FIGHT BACK! Show Your Landlord The Money
Assuming a 5% increase per year:
- Year Monthly Rent Annual Rent
- 1 $1,500 $18,000
- 2 $1,575 $18,900
- 3 $1,654 $19,848
- 4 $1,737 $20,844
- 5 $1,824 $21,888
- Total $99,480
Average monthly rent over five years $1,658
Whew! Tough information to read right? The good thing is, the bad is out of the way! Start the steps to your future of home-ownership and join me next week to get the essential Information on the benefits and perks of home-ownership.
If you or someone you know is ready to take the step towards buying a home, give RE/MAX All-Pro a call at 661.945.9461.