I recently had a conversation with a very intelligent young man who was SO convinced that renting was better than buying, his “wall” of judgement was too thick to penetrate. He wanted to “be convinced” otherwise. Look… there’s no other way to put it:
– a recent buyer-client moved into his new home around Christmas 2009
– mortgage payment: roughly $1100/mo
– by late 2013 the home owner had about $15,000 in equity
Example:
Purchase Price December 2009: $125,000
Market Value December 2013: $140,000
Equity (profit): $15,000
– mid-2014 his equity has jumped to about $25,000
Example:
Purchase Price December 2009: $125,000
Today’s Market Value (July 2014): $150,000
Equity: $25,000
RESULTS – the renter versus the buyer:
– Ownership: $25,000 PROFIT accrued in 55 months (approx.)
– Renter: Just LOST $1100/month for 55 months totaling $60,500 (and that’s not taking rent increases into consideration after every lease renewal)
What do you think? Rent or buy?
No matter how you slice it, owning real estate can be much more profitable than playing the stock market. Where else can you get a +/-20.00% rate of return in less than 5 years?
THE TRUTH
I can’t guarantee these results with everyone, but I can stand by the value of real estate. The longer you own it, the more value it can have. Afraid of commitment? I’d be more concerned about never seeing $60,500 again.
This is a true story.
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Yes, buying a home can be scary and intimidating, but don’t let the fear of the unknown keep you in the dark. We can shine the light on the pros and cons of home-ownership. If buying is a right fit for you, FANTASTIC! We’ll guide you EVERY step of the way. If renting is better for you right now, we can help with that too. Rent or buy – as long as you know what your options are, we are here to take care of your needs.
Texas law requires all real estate license holders to provide the Information About Brokerage Services to all prospective clients. TREC’s Consumer Protection Notice.
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