Today we wanted to have a talk about whether you should rent or buy your next home. No matter what you choose, you’re paying a mortgage.
Some people are scared of the word “mortgage” because of the commitment. Even if you don’t technically have one, you’re paying for one if you’re renting. You’re actually paying more than a mortgage would cost and making your landlord money in the process.
Renting does have some benefits, but only as a temporary solution. The goal should be to own the roof over your own head. If you don’t, you’re just paying for somebody else to own the roof over your head.
Those that own homes tend to have a much higher net worth than those who don’t. A mortgage also gives you a fixed rate that you can use to predict what your payments will be now and in the future. The price and payment stay fixed in this case. If you’re renting, you’re at the mercy of the market and the landlord’s decision. Rental rates have gone up much higher than home prices in the last few years.
If you have any questions for us about this topic or anything else related to real estate, give us a call or send us an email. We would love to hear from you.