02/27/2019: Rent vs. Buy- Why Millennials Should Be Buying Homes

Rent vs. Buy- Why Millennials Should Be Buying Homes

                As a millennial myself, the idea of “owning” a home is a little scary.  Can you imagine having to make home repairs and pay for them out of your own pocket instead of calling your landlord?  Issues likes these seem to keep millennials like me from taking the step to home ownership.  But in reality, long-term renting usually turns out to be much more expensive than the responsibilities that come with owning a home.  So here are three things to consider that might just save us major cash in the long run.

1. You could spend nearly a half a $1,000,000 on rent over the years – and own nothing. It’s an obvious truth that should make us cringe. So, let’s break down the math and say that your rent is $1,500/month, that means $18,000/ year and after so many years…. You get the point, renting is expensive and the convenience may blind us from realizing how much could be saved by buying a home.  source: https://www.cnbc.com/2018/01/04/self-made-millionaire-tells-millennials-buy-dont-rent-a-home.html

2. Making your mortgage payment is often cheaper than your rent, and instead of filling your landlords’ pockets, you could be putting money back into your house, securing your future and your financial needs.  source: https://www.mymillennialguide.com/millennials-should-buy-a-home/

 

3. If you buy a starter home now, you have the opportunity in the future to turn it into a rental property when you purchase your next home. This is just one strategy that may benefit your long term financial goals, by renting your original starter home, you could become a landlord and have the potential to earn extra income. source: https://www.mymillennialguide.com/millennials-should-buy-a-home/

There are a multitude of reasons why buying a home is great option and a better financial investment than renting. If you have reservations or have been on the fence about whether you should buy a home, contact our mortgage department today, advice is always free.

 

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