Renting vs. Buying: How Much Money Are You Really Throwing Away?

In the next five years, renters will spend between $63,000 and $220,000 on rent—and own nothing. With the average U.S. rent at $1,599 per month, that's $95,940 over five years. In high-cost areas, this amount can skyrocket to $220,000. This money contributes to your landlord's wealth, not yours.

The Financial Impact of Renting

Renting offers flexibility and lower upfront costs, but it lacks long-term financial benefits. Rent payments don't build equity or provide tax advantages. Additionally, rents have been increasing, with a 24% surge over the last five years in some areas.

The Benefits of Homeownership

Purchasing a home requires a significant initial investment, including a down payment and closing costs. However, it offers stability, potential property value appreciation, and the opportunity to build equity. Homeowners can also benefit from tax deductions on mortgage interest and property taxes.

Comparing Costs: Renting vs. Buying

Consider a scenario where you're deciding between renting and buying:

• Renting: At $1,599 per month, you'd pay $95,940 over five years, with no return on investment.

• Buying: Assuming a $250,000 home with a 20% down payment ($50,000) and a 30-year fixed mortgage at 3.5% interest, your monthly payment (including taxes and insurance) might be around $1,200. Over five years, you'd pay $72,000, and a portion of this would build equity in your home.

Building Wealth Through Homeownership

By choosing to buy, you're investing in an asset that can appreciate over time. Historically, real estate values tend to increase, contributing to personal wealth. Instead of paying your landlord's mortgage, you're building your own financial future.

Take the Next Step

Don't let your hard-earned money disappear into rent payments. Explore your homeownership options today and start building wealth for yourself. Contact us to discuss how you can transition from renting to owning and make your money work for you.