Do you ever feel like you go to work just to pay bills? You're stuck in the rat race that life has taught you is normal. You go to work, make money, and pay your bills, that's what we are taught in school. And usually our parents tell us, you're young, have fun. Yea that's great, but how about someone teach us how to use our money? I use to think my problem was not making enough money, I learned it was how I spent the money I made, that was my problem. And one of the biggest positive turns I made was to stop renting and buy my own house. I know we are taught as children and young adults that owning a house is for the rich or whatever it is people say that makes you think it is some unobtainable goal. I assure you it isn't. But what are you really doing when you rent a home? Let's explore that.
For rent? Good for me, bad for you! Why? When you rent a home you are actually making some Real Estate Investor a lot of money. If you don't understand how rent works let me briefly explain. Basically some Real Estate Investor somewhere has decided that he needs to make X amount of money every month on the home you rent in order to actually make a profit. That X amount is your rent. So what does your rent actually do? Well it pays for the mortgage payment on the house, taxes, insurance, maintenance fee, management, etc, while still leaving money left over to put money in his pocket every month. At least that is what should be happening if it's a smart investor. That's the whole point of investing, to make money. I know because I too have investment properties. When you moved in your probably had to pay a pretty healthy security deposit didn't you? Oh, and first months rent right? Do you realize that for that amount you could have probably paid your closing costs on purchasing a new home? But we want get into all the particulars of buying a home today, we are just concerned with why to buy? So on top of paying all this money you also had to sign a lease with the landlord that said what you can and can not do in the home. Great!!!! You just paid someone to tell you how to live. Congratulations!!
Okay, now why should you buy? Well you can actually buy a home for much less a month, normally, than you can rent a house for; remember, those guys you rent from have all the fees they have to make sure are paid. As a home buyer you wouldn't have to worry about management and miscellaneous fees. But of course you do have to pay for taxes, insurance, and the mortgage of course. But the beauty is, you pay less a month for the same quality of living you had before, and maybe even better, and it's yours to do with as you wish. If you want to put a fence up, go ahead!! Don't like that wall in the kitchen, knock it down!! It's yours. Think the master bedroom would look much better if it were purple and green, I don't happen to agree, but go ahead paint it!!! The point is, it's yours. And another great thing about owning a home is appreciation. That means that the home goes up in value every year so when you do decide to move, you don't just give the landlord his keys back, you sell and put money in your pocket. Now how great is that?
Please remember, there are many things to consider when purchasing a home so do yourself a favor and contact a good Realtor to help you through the process. Especially if it's your first home purchase. Take care and good luck out there!