As a renter or first time home buyer, it’s easy to look at home ownership as potentially expensive.
You’ve got home maintenance, insurance, repairs, landscaping and any number of things which may require money to maintain.
But here’s the thing that almost NO ONE REALIZES:
When you rent, there is a cost involved in waiting.
And it’s a HUGE number.
Way bigger than you think.
That’s why I bought a home as early as I could. And it’s why I’ve encouraged MY OWN children to buy their first home’s as early as possible.
It’s the COST OF WAITING!
Forget hundreds, or even thousands of dollars.
When you do the math, the cost of waiting is usually in the HUNDREDS of THOUSANDS of dollars.
Here’s one example we recently ran for a person who was renting, but considering buying a home here in Memphis worth around $265,000.
The cost of rent alone was outrageous, with no equity! One thing that this chart does not include is the cost of monthly renters insurance which can run from $25- $100 per month depending on the value of your belongings. That makes this scenario even more lopsided when you add in an additional $400 to $1,200 a year in renters insurance costs. However, those costs can vary, with Oregon renters insurance costing on average $163 per year.
As you can see, the difference between his mortgage note, rent and appreciation adds up to some really big numbers!
If you’d like to schedule a consultation with a member of our team to run numbers on a home buying scenario, click here to schedule a time to talk.
Your Biggest Tool to Financial Freedom – Buy Early
There’s no debating it… real estate is the #1 way people accumulate wealth in this country.
Or, to put it another way, if you’re counting on your savings or 401k and NOT including real estate in your financial plans, you’re making a HUGE mistake.
The best thing you can do for yourself financially is to buy a home as early as possible in your 20s.
Heck, even if it’s a starter home… buy it a great neighborhood and just watch as your value goes up.
And instead of building someone else’s wealth by paying rent, you’ll be investing in yourself every month.
Don’t be afraid to get started. Owning your home is more fun than you can possibly imagine!
Talk to one of our team members today and ask how the process works. You might be surprised to find that getting a mortgage is the easiest part of buying a home!