Renting vs Homeownership
Are You Making Your Landlord Rich?
With the national average rent for a one-bedroom or studio apartment exceeding $1,500 per month*, renting for just a year can cost more than $18,000! When repeated over time, this can add up. Consider the impact over 10 or 15 years, in addition to annual rent increases. Why let your hard-earned dollars contribute to someone else’s wealth when you can build your own?
The reason most renters continue the rental cycle is they don’t realize just how easy it can be to purchase a home. With mortgage rates at historic lows, and a smart purchase on a starter home, your monthly payment could be less than what you’re currently paying in rent! If you want to add stability to your life, build your net worth, raise a family, or establish your foundation in the real estate market, owning a home
could be a great way to start.
Advantages of Owning
- Save Money – Owning a home may be less expensive than renting, saving you money every month.
- Stable Payments – With a fixed-rate mortgage, you’re protected from rent increases assuring your payment will remain the same, so as your income increases you can enjoy more cash flow.
- Flexibility – Owning a home gives you the flexibility to redecorate, remodel, or have pets at your discretion.
- Increase Your Credit Rating – Making your mortgage payments on time may boost your credit score which can reduce the interest you’re charged on other types of credit.
- Rent Extra Space – If you increase your number of bedrooms, you gain the option to have roommates and apply their rent toward your payments.
- Build Equity – You gain the ability to build up equity along with the possibility of using that equity if needed in the future.
Tax Deductions may be available for paid property taxes and mortgage interest.
See How Rent Payments Add Up
| Per Month | 10 Years | 20 Years | 30 Years |
|---|---|---|---|
| $500 | $60,000 | $120,000 | $180,000 |
| $600 | $72,000 | $144,000 | $216,000 |
| $700 | $84,000 | $168,000 | $252,000 |
| $800 | $96,000 | $192,000 | $288,000 |
| $900 | $108,000 | $216,000 | $324,000 |
| $1,000 | $120,000 | $240,000 | $360,000 |
| $1,100 | $132,000 | $264,000 | $396,000 |
| $1,200 | $144,000 | $288,000 | $432,000 |
| $1,500 | $180,000 | $360,000 | $540,000 |
| $2,000 | $240,000 | $480,000 | $720,000 |
| $2,500 | $300,000 | $600,000 | $900,000 |
Mortgage loans are provided through our partnership with Member First Mortgage, LLC, NMLS ID# 149532. All loans are subject to approval. RiverLand FCU, NMLS ID# 528194.
*The Apartment Guide 2020 Annual Rent Report: apartmentguide.com/blog/apartment-guide-annual-rent-report/#National
