Renting vs. Home Ownership
I understand that home ownership seems impossible for most of us but there are great advantages with owning a home.
There are more disadvantages for renters for instance, the average monthly rent payment for a one bedroom unit is around $1,600. 00 a month in an undesirable community. With a rent payment of $1,600 per month that equals $19,200 per year. For five years (60 months) at $1, 600 per month the total rent payment equals $1,152, 000.00 yes that over a million dollars in five years for an apartment that you don’t own.
The median purchase price for a home in the area where I live (Georgia) is $397.000.00 and that’s on the upper level of home ownership. Mortgages include taxes and insurance but with renters insurance is not included. Granted, most mortgages are for thirty years( 30) years but the costs are fixed; however, interest is applied to the thirty year term on the loan.
This narrative is not to belittle renters but to inspire renters to focus on becoming homeowners. Renters have limited rights, landlords only care about profits not those people (Renters) that make them (Landlords) rich. Repairs are rarely addressed by land-Lords and if they (repairs) are handled it’s usually a patch job.
Home-Ownership is the first step in wealth building, there are tax advantages in owning a home. A home can be used as collateral if needed but I’m not suggesting that your home should be used as such but it is an option that renters don’t have. As indicated by paying rent for 5 years a person could have purchased two or three homes. I also would suggest to the first time home buyer, purchase a duplex, you can rent one unit and live in the other until with the renter paying the mortgage. Home owner-ship is the way to wealth building.
Marvin Dixon/Founder
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