any renters say they it. Assume further that you live
prefer to rent because it in the unit for three years.
is simple and doesn't During this period, you will have
carry the stress of home paid your landlord a total of
ownership. In truth, they are $36,000. You can further assume
simply making other people rich. that your landlord's mortgage
payment was less than $36,000 or
Equity he would raise your month
payment. The end all effect of
What if I told you that if you this situation is you have paid
purchased a home, you wouldn't his mortgage for three years.
have to make any monthly payments Think about that for a minute.
on it? On top of this, I'd
promise you that when the house Over the three years, you have
was sold, you would get to keep made every single mortgage
all of the equity gain in the payment for your landlord. In
home. Sound like a pipe dream? doing so, you have helped him
This is exactly what renters are build equity in the home through
doing for their landlords. the part of the mortgage payments
applied to the principal of the
Regardless of how you break down loan. On top of that, the equity
a renting versus homeownership growth in the property is
argument, there is one universal entirely his. If you've paid off
fact. If you rent, you are $10,000 in principal and the home
building equity for your has appreciated by 100,000,
landlord. Let's take a look at a you've just put $110,000 into his
simple example. pocket. Yep, you've been making
other people rich.
Assume you rent a unit in a
duplex and pay $1,000 a month for If you're renting, you will
undoubtedly find the above your landlords?
scenario very depressing.
Unfortunately, it gets worse. Go Renting is a necessity, not an
ahead and make a list of your option. You should only rent if
assets and debts. List every you cannot get into a home for
single thing you can think of and some reason. With millions of
then subtract the total debts loan options out there, home
from the total assets. Whatever ownership should be at the top of
the number is, would it look your priority list.
better if you had added $110,000
to your balance sheet instead of
About the Author:
Dan Lewis is with http://www.gwhomeloans.com - San Diego mortgage brokers providing San Diego home loans. Visit http://www.gwhomeloans.com/services.html to learn more about options on San Diego mortgages from a San Diego mortgage broker company.
Source: www.isnare.com
