Why rent when you could buy!
Most people understand that buying a home may be a better investment than renting, however many people keep throwing their money away instead of building equity in a home. The home process is not that complicated and a REALTOR® or a Mortgage Lender are some of the best resources to help you begin your journey.
Many people are under the impression that they’re not “qualified” to purchase a home yet and some of the most common concerns are:
- We don’t have enough money for the down payment.
- We don’t know where to start.
- Our credit score is too low.
- Buying a home is really expensive and we don’t have that kind of money.
First of all you won’t have any savings if you are spending your money on expensive rent, guess what is factored into the price of rent?
Landlords set the price on rent depending on many different factors, some of the most common ones are:
- They still owe money on the property, perhaps they still have a mortgage on it (including interest), guess who’s paying that mortgage now?
- Property taxes need to be paid, guess who’s paying for it now?
- The property may have Home Owners Insurance, guess who is paying for it?
- The property needs maintenance, guess who’s paying for it?
- Some properties may have Home Owners Associations, guess what? YOU ARE PAYING FOR IT!
I could go on and on but I think the point has been made. In addition to these sunken costs the landlord will also want a profit, believe it or not some people need to make some income off of their property and there is absolutely nothing wrong with that in my opinion, but wouldn’t you much rather own the property instead of just throwing your money away?
There are many comparative tables which show how much money one will just throw away after 5 years of renting compared to 5 years of owning ad the difference grows with every passing year. In San Antonio, according to the San Antonio Board of Real Estate (SABOR) the average cost of renting is $1,530, this amount may be much higher than a mortgage (depending on interest, years etc) and the price of renting increases year over year. In July 2018 the price of homes saw an increase in 5% year over year. This 5% increase in the value of homes is wonderful if you are a homeowner but not so great if you are stuck paying someone else’s mortgage.
For more information call or text Manuel Huitron REALTOR® JB Goodwin REALTORS® (210) 274-2778
Here is a post on First Time Home Buyers
Here is a post on Real Estate Investing