Have you taken the time to do the math on your current renting situation? I mean really do the math? Most people rent because they are either a) young and don’t want to commit to a property or 2) they think they are unable to get a mortgage due to bad credit or another reason. Because of number 2, people spend years wasting money on renting and not building any positive wealth for themselves.
Here are some of the fees and costs to renting:
- Monthly rent x 12 months x years renting
- Household maintenance – what you have done vs what the landlord has done.
- Are you doing the landscaping or the landlord?
- How much are you paying in renters insurance for your contents?
- If in a city, is there a parking fee?
Among others, the above-mentioned costs can really rack up. Simply compare rent to a mortgage. A landlord’s goal is to make money off of a rental. So the cost of the rent is going to be higher than their mortgage payment on the property. Also, a landlord will not want to make regular maintenance and sometimes will allow that to fall on the renter. All in all, the cost of renting is out of control.
Compare that to owning. While yes, you have maintenance and other fees the positive is that you own the property. You are not responsible for fixing and repairing someone else’s home. The mortgage never goes up yearly and no one can sell the property. Lastly, most importantly, one day you own the property and will never have to pay a dime again.
The bottom line, the math checks out. Owning a home is always better than renting!