There are 3 important factors to know when considering being a lifelong renter or becoming a homeowner.

1. The monthly rent you are paying today will be a lot more costly in the future. If you don't believe me just ask your parents and grandparents how much rent they paid for their first place back in the day and compare the rent they paid to the cost of renting a home today. You eyes are about to get opened really WIDE.

2. When you buy a home and you get a fixed rate loan, your monthly payment to the bank (principal & interest) will stay the same for the life of the loan. This is a HUGE deal because keeping that monthly payment the same while your income increases in years to come will give you more ability to save money, be a better provider for yourself and family and it gives you the ability to improve your lifestyle. The cost of rent will undoubtedly increase which can hinder your monthly cashflow and it can lead to a reduction in the quality of life for you and your family. If you keep renting you may find that you have less money left over at the end of the month and that is never a good feeling.

3. If you compare a renter over a 15 year period you will be shocked at the difference between the renter and the home owner. A renter gets the use of the home and a stack of 180 rent receipts. The renter doesn't get any benefit of owning the home other than the basic use. The renter can't customize the home, usually can't paint your kids bedrooms, you can't install a home theater or create a workshop, she shed or a man cave without your landlords permission.

A homeowner over a 15 year period will very likely have a very different experience. They will have been paying towards something that they own and control. They can customize the home for themselves and their family. If they want to paint their daughters room pink, they can because it is their house. If they want to finish the basement into a craft, hobby, playroom or man cave...they can do it. During the 15 years of making payments on their home, their loan balance is going down and at the same time the value and equity of their home is usually increasing which is creating equity and an asset for them to benefit from now and in the years to come.

Something that many renters don't think about is that they are paying towards a home each month but in the end they have no home to sell because those monthly rent payments were benefiting the landlord and not themselves. The homeowners has the ability to sell their home, convert their home into cash and most people use that cash to upgrade and improve their lifestyle. Many homeowner also can use the equity in their home for things that benefit them and their family.

I have helped more than 1,000 1st time homebuyers purchase their 1st home and I've NEVER had a 1st time homebuyer tell me that they wished they had never bought their 1st home or that they wished they chose to be a lifelong renter. Do people experience some ups and downs related to homeownership? Of course! Are there times when renting would feel easier? Sure. As of today, roughly 2/3rds of the population in the U.S. are homeowners.

The Federal Reserve shared a study a few years ago that compared the net wealth of the average renter with the average homeowner. The results of that study very eye opening. The net wealth of the average tenant was slightly less than $7,000. The net wealth of the average homeowner was more than $250,000. For most people, being a homeowner pays because buying a home is a form of a forced savings and the longer you own a home the bigger that forced savings account typically becomes.

One of the biggest regrets that many renters have in life is that they wished they would have bought a home when they were younger. Let that thought really sink in for a minute.

Homeownership isn't for everyone and about 20% of the clients and customers I meet with I recommend that they actually wait to buy a home. The 4 most common reasons I will tell someone to wait and not buy right now are listed below:

1. They don't plan to live in the area for more than 2 years.
2. They are about to switch jobs and their income will become unstable.
3 Their credit or financial circumstances are not ideal to buy a home now.
4. They can only afford a fixer upper home and they are NOT handy.

This video covered a lot in a very short period of time. There are certainly a lot more factors to consider when deciding if you should kick your landlord to the curb and rush out and buy a house. My goal is simply to offer a different perspective and get you thinking about buying a home when you are ready. As the the saying goes, live comes at you fast and the older we get the faster the time seems to go.

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Thanks,

Sam Miller
REMAX Stars Realty
710 South Main Street
Mount Vernon, Ohio 43050
Call 7403977800
http://www.SamMillerSells.com

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