Why buy instead of rent?
Buying A Home Might Be Harder At First Than Continuing To Rent
It will take more effort
It may cost more money
It requires more responsibility
It is a longer term commitment
So why consider it?
WOULD YOU RATHER...
What makes buying a house
a good investment?
Which future do you want?
Renter and buyer start out with similar payments. Renter’s payments go up and up over time, whenever the landlord chooses. Buyer’s payments stay the same until the loan is paid off, then go away.
Over the next 30 years, renter and buyer will pay hundreds of thousands of dollars for a place to live. Renter’s future costs are unknown. Buyer’s predictable costs will probably significantly less than renter’s.
Renter keeps paying for as long as renter needs a place to live. Buyer stops paying once the loan is paid off, probably in 30 years or less. Renter starts out not owning anything—the place they live belongs to the landlord, so its value doesn’t matter. Buyer starts out not not really owning much, because the loan balance almost equals the home’s value.
Renter never owns anything—the places renter lives belong to someone else.
Buyer owns more and more value—the loan balance goes down as the home’s value goes up. Renter will always have to make more and more payments, with no security that renter can even stay. Buyer ends up owning a home worth hundreds of thousands of dollars that buyer can stay in as long as wanted and can pass along to family