Do you like setting your money on fire and watching it burn away as it does absolutely nothing for you? In this episode of Hearty Home, I’m going to show you why renting a condo or house is the same thing as throwing your hard-earned cash away. We’ll find out why homeownership might be more attainable than you think and why it’s an investment worth making.
Can You Buy?
Let’s spill the tea (that’s not so sweet) about renting. You might be thinking, ‘It’s 2022; you have to sell both your kidneys and a lung just to be able to afford even buying a condo, let alone a house.’ If you think becoming a homeowner just isn't in the cards for you, that's where you're wrong.
Last year, 39% of all homebuyers were under the age of 40—aka Millennials. You know, the people that they said would never be able to buy a home? Clearly, it's possible. So why are you still renting? ‘It's too expensive to buy’ is a complete misconception.
Everybody thinks you need to put down 20% to buy a house, so I don't blame anyone for thinking that homeownership is not possible. How can you afford to save $75,000? Then you have to deal with a mortgage payment, property taxes, insurance, and utilities. It sounds like a whole lot of work that nobody wants to deal with.
Rent Versus Housing Payments
What if I told you that the average rent in Broward County is $2,000? Oftentimes, utilities are not included, adding another $150 to your monthly expenses. However, the average mortgage payment in Broward County is $1,674.
Will you look at that! It's cheaper to buy than rent. While that's not supposed to be the case, unfortunately, it is. If you're thinking about that 20% down, know that it's 2022. You can put down as little as 3% with certain loan programs, and many areas even have 0% down loans.
Investing In Your Future
Here is the ultimate kicker. I know it seems like buying a home is a lot, but it's worth it. When you pay your rent every month, where does that money go? Right into your landlord's pocket. You're never going to see that money again.
When you pay your mortgage every month. Where does that money go? I'm sure some of you think it goes to the bank, and you're right to an extent. However, with every dollar that goes to the bank, you own a greater percentage of your home. As you increase your homeownership percentage—or what they call equity—your home is going up in value.
When you decide to sell your home, every dollar you spent on it all those months will go right back into your pocket. Additionally, unlike your rent, your mortgage payment doesn't go up year after year.
Buying a house isn't a pipe dream, and a dream without a plan is a wish. If you have any questions on how to get started with your plan, give me a shout. I’d be happy to hear from you!
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