Rent or Buy: Either Way You’re Paying A Mortgage!

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Rent or Buy: Either Way You’re Paying A Mortgage!

Rent or Buy: Either Way You’re Paying A Mortgage! | Simplifying The Market

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

With home prices rising, many renters are concerned about their house-buying power. Mark Fleming, Chief Economist at First American, explained:

Over the last three years, renter house-buying power has increased fast enough to keep pace with house price appreciation, so the share of homes that a renter can afford to buy has remained the same since 2015.

Although mortgage rates are expected to rise, they are still low by historic standards, and real household incomes are the highest they have ever been. Assuming this trend continues, our measure of affordability, which takes into account income, interest rates, and house prices, indicates that homeownership is still within reach for renters.”

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.51% last week.

Bottom Line

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

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josephinetraina
josephinetraina
Josephine’s passion for the beauty and history of Charleston and her depth of knowledge of Charleston’ real estate inventory have made her the Broker of choice for incoming residents of the “Holy City”. As a MD Preferred REALTOR and DRS Agent, she is an advocate for medical professionals, assisting them and their families, guiding them to make an informed decision and excellent real estate investment. As a former Relocation Director, she has an intimate knowledge of the industry and understands what consumers need when relocating to a new city. With over 25 years in the real estate industry and a Broker in the States of South Carolina, Georgia, she handles first-time home buyers to seasoned investors, from historic homes, beach bungalows or condos or lofts. Dedication to understanding clients’ individual needs, putting each client at the center of the process and providing exceptional real estate experiences are the mainstay of her business. Josephine’s goal is to deliver superior service with insight and innovation, realizing that “Owning A Piece Of The America Dream” is the heart of everything we do. As a former managing Broker and Business Development Manager, her focus is on marketing, negotiating the sale and keeping on top of all of the little details that bring a client's transaction to a successful close. She continues to educate herself and hone her skills in order to provide the highest level of professionalism to her clients.

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