There are five important reasons why, if you’re a millennial, you should stop paying rent and consider buying your own house.
1. By paying rent, you’re paying someone else’s mortgage anyway. The money that’s coming out of your account is paying off the home someone else purchased. Paying a mortgage is the same thing as paying rent, but the difference is you own stake and equity in your home.
2. Someone else is making money off of you. The national average increase in equity in your home every year is 3.4%. By paying rent, you’re not able to appreciate that appreciation. Getting your own mortgage will help you keep more money in your pocket. In the long run, it’ll help you get ahead.
3. You can make a home truly yours. When you rent, you have to get permission from your landlord to do things like paint walls or rip out carpets and install new hardwood, and you won’t get any appreciation off of those updates either. When you own your own home, you can make it unique to your personality and lifestyle.
"When you own your own home, you can make it unique to your personality and lifestyle."
4. It doesn’t cost as much as you think to own a home. You might be paying more for rent right now than it would cost you to own your own place. My wife and I pay $1,350 a month for our mortgage, and we own our townhouse. Our neighbors pay $1,700 a month to rent the same exact thing. We’re saving $350 just by owning our home.
5. There are different programs available to help you afford a home. Hardly anyone pays a 20% down payment anymore. We only put a 3% down payment on our home to secure our $1,350 monthly mortgage payment. You can talk to your lender or reach out to us if you want to learn more about the national programs available for down payment assistance.
If you have any questions about this or any other real estate topic, please feel free to give us a call or send us an email anytime. We’d be glad to help you on your home buying journey.