Renting vs. Buying: The Financial Impact on Your Future

Renters! I've got some eye-opening information to share with you today. Did you know that in 2020, the average price for a three-bedroom rental property was $995 per month? Fast forward to 2023, and that number has skyrocketed to $1495 per month. Yes, you read that right! Rent prices have seen a staggering increase of nearly 16% annually. It's a shocking reality that's hitting the pockets of many tenants.

When you think about it, these escalating rental costs are a significant drain on your finances. Just imagine the possibilities if you could redirect that money towards owning your own home. 

Meet Sue Mershon local mortgage expert with Gold Star Financial 

I had the pleasure of speaking with Sue Mershon, a local mortgage expert from Gold Star Financial. Sue shared some jaw-dropping numbers with me, and I couldn't help but be flabbergasted. We delved into the impact of moving from a rental property to investing in a home and how it can transform your overall financial picture.

If you are renting you are missing out on possible long term equity

Let's break it down. Sue conducted a rent-versus-buy analysis, comparing someone currently paying $1495 per month in rent with the potential of buying a $200,000 home. The payment difference might only amount to an additional $100 or $200 to own a home. However, when looking at the big picture over ten years, taking into account tax implications, various costs (including maintenance and property taxes), price appreciations, and tax benefits, the results are astounding.

By choosing to buy a home, you could be nearly $300,000 ahead. Homeowners are the ones who truly accumulate equity and build wealth. Just think of the opportunities and financial stability that amount of money represents.

Downpayments 

Now, let's address a common myth: the belief that you need a hefty 20% down payment to purchase a home. It's simply not true. Sue reveals that there are numerous programs available with different down payment requirements based on individual circumstances. On average, first-time homebuyers typically put down around 3% to 5%. So, don't let the misconception of a large down payment discourage you from exploring homeownership.

Condos

Renting does have its perks and flexibility, but have you ever considered condos as an option? Many first-time homebuyers are surprised by the value they can find in the $200,000 price range. Condos often offer more modern amenities and conveniences, and they come with added benefits like regular lawn maintenance, snow removal, and other services. This allows you to enjoy some of the advantages of renting while still reaping the long-term benefits of homeownership, such as tax deductions, mortgage interest write-offs, and equity building. Interested in condos for sale in Green Bay you can search everyting in the local area here. 

Reach Out Today

If you're tired of investing in your landlord's future and want to start building your own wealth, I encourage you to reach out to Sue Mershon with Gold Star Fincial for a consultation. She's a knowledgeable expert who prioritizes education and will guide you through the process without being pushy.

And of course, if you have any questions or would like to learn more about the home-buying process, feel free to reach out to us as well. We're here to help and provide a buyer consultation to ensure you understand every step of the journey. 

So, it's time to consider the long-term financial impact of your housing choices. Let's invest in our own future and make the most of the opportunities that homeownership can provide. Don't wait—start building your wealth today!