Rent may be less money out of your pocket in the short term, but it doesn't help you build a financial future.
When you pay rent, your money goes to the landlord, building their financial future.
A mortgage payment is an investment into homeownership that builds your net worth and pays off in the long term. Rent, like everything else, will always increase over time. But a fixed mortgage locks in your monthly housing budget. And, when you make that mortgage payment, yes you are paying some interest, but you are also paying yourself. When you look at the math of homeownership, it's apparent that the investment is well worth it.
First American gathered data from 2006, 2015, 2019, and 2022 that illustrates the different financial paths of owning or renting renting and where they lead in terms of wealth gained or lost.
This data even factors in other expenses that come with homeownership such as insurance, property taxes, and repairs, making clear that, at least from a financial aspect, everyone should be looking to own their home. It's merely a question of whether your lifestyle and budget will allow for it.
Fortunately, afforability is beginning to improve as our market balances out. Mortgage rates are reportedly coming down, prices are softening, and incomes are rising. These factors haven't made buying easy, but certainly more possible than just a few months ago. So get a start on this investment and get in touch with an MVP agent today! Also, go ahead and register for our upcoming class for buyers "The Pathway to Homeownership"!