Today I discuss why buying a home is infinitely more advantageous than renting, all things being equal.
Positives of home ownership:
Positives to renting:
you’re free but poor
rent builds nothing
Example: $ 100,000 house
@ 4% on a 30 yr mortgage…
you pay around 500 a month
renting that same house, you’ve just blown $120,000 over ten years
after 10 years, you have 22 k in equity if you buy
Add to 22 k the extra 500 a month you’re saving on a mortgage vs renting (500 mortgage vs 1,000 in rent a month)
That’s 60 k over 10 years in extra cash.
60 k (500 x12x10)
+ 22k in equity
equals 82 k in real money in equity/cash
now add the 120, 000 the renter wastes in rent…
The renter has wasted $202,000 in opportunity costs over ten years.
See why renting sucks and building equity Works? Listen to the podcast and see for yourself.