By Sherry Riano of The Sherry Riano Team
Renting your home costs more than you think.
If you’re renting, you may think you can’t afford to buy a home. But when you realize the cost of renting and waiting, you may think differently.
As a renter or first time home buyer, it’s easy to look at home ownership as potentially expensive—you’ve got to pay for home insurance, repairs, landscaping, and maintenance.
But here’s the thing that almost no one realizes: When you rent, it costs you far more than your monthly check to your landlord. There is a cost involved in waiting to buy your first home. And it’s a huge number—way bigger than you think.
That’s why I bought a home as early as I could. It’s why I’ve encouraged my own children to buy their first home as early as possible. It’s the cost of waiting.
Forget hundreds or even thousands of dollars. The cost of waiting to buy your first home is usually in the hundreds of thousands of dollars.
Don’t believe me? Here’s an example:
Jamie, a woman in her early 30s living in the Triangle area, had been renting for years. She was paying $1,632 per month to rent a home in Raleigh. Jamie was considering buying a home in Raleigh worth around $265,000.
I sat down with Jamie and did a workup of what it would cost Jamie to buy a home for $265,000. Then, we went over what it would cost her to continue to rent for 1 year. Finally, we determined what it would cost her to continue to rent for 9 more years. Jamie was shocked to learn that she could own her own home right now for $1,563 per month—less than she was paying her landlord to rent!
The difference between her mortgage note, rent, and appreciation adds up to some really big numbers!
Schedule a consultation with one of my team members! We’ll run numbers on a home buying scenario to ensure you know where you stand.
Your Vehicle to Financial Freedom: Buy Early!
There’s no debating it—real estate is the #1-way people build wealth in this country. If you’re counting on your savings or 401k and not including real estate in your financial plans, you’re making a huge mistake.
The best thing you can do for yourself financially is to buy a home as early as possible in your 20s. Buy a starter home in a great neighborhood, and watch your home value increase over time!
Instead of building someone else’s wealth by paying rent, you’ll be investing in yourself every month. Don’t be afraid to get started.