|
  |
|
|
WHY RENT WHEN YOU CAN OWN?
The chart below shows the amount of money you pay to your landlord each and every year, and over the course of several years.
|
MONTHLY RENT |
PER YEAR |
5 YEARS |
10 YEARS |
25 YEARS |
30 YEARS |
| $600 | $7,200 | $36,000 | $72,000 | $180,000 | $216,000 |
| $700 | $8,400 | $42,000 | $84,000 | $210,000 | $252,000 |
| $800 | $9,600 | $48,000 | $96,000 | $240,000 | $288,000 |
| $900 | $10,800 | $54,000 | $108,000 | $270,000 | $324,000 |
| $1,000 | $12,000 | $60,000 | $120,000 | $300,000 | $360,000 |
| $1,100 | $13,200 | $66,000 | $132,000 | $330,000 | $396,000 |
| $1,200 | $14,400 | $72,000 | $144,000 | $360,000 | $432,000 |
|
If you are currently renting or about to rent at $1,000 per month you are paying your landlord $12,000 per year and over 5 years that's $60,000. That money is gone, you will never see it again! And it gets worse. You are not getting the tax benefits of home ownership or building any equity. Wouldn't you rather put that $60,000 in your pocket instead of your landlords? What about interest rates? Rates are still historically very low. If rates go up doesn't it make sense that your landlord will use that as an excuse to raise your rent? If you buy now, you can always refinance if rates drop. You are saving now on the purchase price. If you wait to buy when rates go down there is one thing you can count on. Low rates bring on higher prices. That makes NOW the BEST time to buy. |
Updated 11-11-14
