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Should I Rent or Should I Buy?

Should I Rent or Should I Buy?

When you rent, you: Face Rising Rental Costs; Your monthly payment generally goes up each time you sign or renew a lease. Don’t Earn Any Financial Benefits; Rising rents put a pinch on your wallet, and you don’t get a return on your investment. Limit Your Ability To Save; As rents rise, it can be harder to save for a down payment and buy a home in the future. When You Buy, You: Stabilize Your Housing Cost; Your monthly payment is locked in for the length of your loan usually 15 to 30 years. Own a Tangible Asset; Any home price appreciation helps grow the value of your home. Grow Your Net Worth; Your payment and price appreciation build equity and your net worth over time.

When you rent, you have no control over when your payment monthly increases. You may also face an unexpected sale of the property or foreclosure causing you to be forced to look for a new home to rent thats usually last minute and no ideal for your present situation. It is common that the rent amount increases each time you sign or renew a lease.

Landlords in Missouri may increase the rent to any amount with no notice or justification.”

As a renter, you have made the decision to purchase a building. Why you ask? Great questions! Over time, each renter who signs a lease has agreed to pay the next year or more mortgage payments for the property owner. That’s right, you are litterlery buying someone else building and building their net worth. All equity is retained by the property owner. Buyer a home isn’t for everyone. If your financial situation and personal desires allows you to, it may be best longer term.

Renting Limits Your Ability to $AVE!

Each year as rent increases, your ability to save cash gets harder. This makes it difficult to save up and buy your dream home. As agents, we are often asked how to save for a new home. You MUST get on a budget and discuss a plan with your agent. May renters are converted to buyer sooner than they planned after discussing the cost of renting vs. buying a home. Home buyers are often shocked by the cost of owning a home vs. renting.

Stabilizing your Housing Cost

When you own your own home, you are typically locked into your payment usually for 15-30 years. You may experience minor adjustments if you escrow you taxes and insurance; however, the portion of your payment directed to your mortgage will not change for the term of your mortgage.

Own a Tangible Asset

Any home price appreciation helps grow the value of your home. I like to say, “This is one of the only investments I have that I can lick”. It’s true! If I wanted to go that far, I can touch my investment. You can not touch a stock. Real Estate is not going anywhere!

Grow Your Net Worth

This is by far my favorite. Buying a home is the biggest investment that most people make in their lifetime. This is the American Dream! Your payment and price appreciation build equity and your net worth over time.