Why Are You Still Renting? Start Building Your Own Equity and Wealth

Every month, millions of renters make a payment to their landlord. That payment helps cover the property owner's mortgage, taxes, insurance, maintenance—and potentially helps that owner build equity and long-term wealth.

So here's a question worth asking:

Why are you still paying someone else's mortgage when you may be able to start building equity of your own?

Renting Has Its Place—but What Is Your Long-Term Plan?

There are absolutely situations where renting makes sense. Maybe you're new to the area, your job situation is changing, or you simply aren't ready to settle into a home.

But if you've been renting year after year because you assume you can't afford to buy, don't have enough for a down payment, or believe you need perfect credit, it may be time to take another look.

Homeownership may be more attainable than you think.

Your Monthly Housing Payment Could Be Building Something for You

When you rent, you receive a place to live in exchange for your monthly payment. When the lease ends, however, you don't own a portion of the property.

Owning a home is different.

As you make mortgage payments, a portion of your payment generally goes toward reducing the principal balance of your loan. Over time, that can help you build equity.

If the property appreciates in value, that can potentially add to your equity as well.

Think about the difference over five, ten, or twenty years. Instead of simply having a history of rent payments, you could potentially have an asset with substantial equity.

Homeownership Can Be Part of Building Long-Term Wealth

For many Americans, their home becomes one of their largest financial assets.

Homeownership isn't a guaranteed investment, and property values can rise or fall. There are also costs that renters don't normally have to worry about, including repairs, maintenance, property taxes, homeowners insurance and, in some communities, HOA fees.

That's why buying the right home at the right price matters.

The goal shouldn't simply be to become a homeowner.

The goal should be to purchase a home that makes sense for your finances, lifestyle and long-term plans.

"I Don't Have 20% to Put Down."

You may not need it.

Depending on your qualifications and the property, there are financing programs that can allow buyers to purchase with significantly less than 20% down. VA loans may even provide qualified veterans and service members with a zero-down-payment option.

There may also be down-payment or closing-cost assistance programs available to qualified buyers.

Before assuming you can't buy, find out what you actually qualify for.

"Interest Rates Are Too High."

Interest rates matter, but they're only one part of the equation.

Waiting for the "perfect" interest rate can mean continuing to pay rent while home prices, rents, inventory and your own financial circumstances continue to change.

Rather than trying to predict exactly what mortgage rates will do, I believe buyers should look at the entire picture:

Can you comfortably afford the payment?

Does the home meet your needs?

Are you planning to stay long enough for homeownership to make financial sense?

Does purchasing improve your long-term financial position?

Those are much more important questions.

What Could Another Five Years of Renting Cost You?

Suppose you're paying $2,000 per month in rent.

That's $24,000 per year.

Over five years, that's $120,000 in rent payments, even before considering possible rent increases.

That doesn't automatically mean buying would have been better—homeowners have expenses too—but it illustrates why renters should periodically compare the true cost of renting with the true cost of owning.

You may be surprised by what the numbers show.

You Don't Have to Figure This Out Alone

My job isn't to pressure someone into buying a house.

My job is to help you determine whether buying makes sense for you.

We can look at your goals, your approximate price range, available homes and the costs associated with ownership. A qualified lender can then help determine financing options and what monthly payment may be realistic.

If the numbers say you're not ready yet, that's valuable information too. We can identify what needs to happen so you're better positioned when the time is right.

But don't spend another year renting simply because you assumed homeownership wasn't possible.

You work hard for your money. Maybe it's time to see whether your monthly housing payment can start working toward your future, too.

Ready to Find Out?

Let's have a conversation about what buying a home could look like for you in the Tucson Metro area.

Wes Stolsek

OMNI Homes International

520-404-9773

www.wesleystolsek.com

Helping you make informed real estate decisions while building toward your future.