Buying is a Better Idea Than Renting Right Now!
How much do you pay for rent in Charlotte? The average is about $1,000 per month. That means each year, you give someone else $12,000. Take that times how long you have lived paid rent and you get an idea of the massive amount of money you throw away when you rent. Even if it’s just five years of rent, that’s $60,000 of your hard-earned money that you will never see again.
If you are an apartment renter in Charlotte, North Carolina, it’s the time to look at buying a house and investing in your future. One of the best ways to get started with this idea is to look at an un-biased comparison of buying versus renting.
As a Charlotte Mortgage Lender, it would seem that we would have an interest in helping people buy a home – after all; we don’t get paid when people rent apartments. So, to keep things fair, on this post, we are using the Rent vs. Buy calculator found on the Government website sponsored by Ginnie Mae.
To make things even more in favor of renting, to not appear biased, we assume homes will not increase in value over the next 5 years. Even in that scenario, just by paying back the loan, a Charlotte Home buyer would end up with $26,753 in home equity after 5 years – more than enough to sell the house, pay a real estate agent commission, and still have $15,000 or so in cash in their pocket. And, aside from the equity, because of the tax savings on mortgage interest, the Charlotte Home Buyer will spend $5,793 less over 5 years compared to renting.
The only person that won’t love this idea is your landlord because, you see, that $26,753 of equity is money you were going to pay him if you kept on renting. If you have the dream of being a homeowner, and buying your first home in Charlotte, get the important stuff done first – buying a home is totally separate from buying your mortgage. Call us or contact us to get a no-obligation consultation scheduled and see if buying your first home in Charlotte is a smart thing to do in 2013.