This is for all the renters out there who are trying to figure out if buying a home is right for them.
Hey there! I’m Anita L Williamson, Associate Broker with James River Realty Group.
Home Rent
First off, let’s talk about renting. Renting is a great option for many people because it offers flexibility and takes the responsibility of maintaining a home off your shoulders. If you haven’t settled down yet, know you’ll be moving around for work, or just want to try out different neighborhoods in your area, then renting is the way to go. Renting also makes sense if you’re just starting and are getting financially stable.
But at the end of the day, renting is a temporary housing solution. Each time you pay your rent, the money goes to your landlord and you never see it again. That means that you can’t use that probably sizable chunk of cash to build equity or wealth. That money disappears.
On the other hand, owning your home provides a gateway to your dream home and long-term wealth. Every time you pay your monthly mortgage payment, those funds go into your home and, as a result, build your equity.
Mortgage Payments
When you sell your home down the road, you’ll get all of those mortgage payments back—usually plus some extra. This is because real estate appreciates over time. Because the value of your home increases compared to the dollar amount of your mortgage loan, you get additional money from selling your home just because you owned it.
When you sell your first home, you’ll likely make a good profit and get a nice pocketful of cash because of equity. It’s nearly always the case that the amount of cash you’ll have from selling your home is quite a bit larger than what you originally used as a down payment. You can then put that profit to work by using it as a down payment on your next home.
Unlike renting, owning a home and building equity is a smart way to invest your money while also having a stable housing situation. When you rent, your payments go to your landlord. But when you own your home, your monthly payments are stored in your property, ready for you to tap into when you sell your home.
If you want to talk more about the power of real estate and how you can buy a home reach out to schedule a buyer consultation today.
I’m Anita L Williamson helping you establish roots in Central Virginia.
