You might be thinking that owning a home is too expensive. Today’s real estate market is red hot in most large metro areas but despite the strong markets in the big cities the overall real estate market hasn’t fully recovered nationally. There are still plenty of places to find a great deal on a home. If you’re one of the many people who are paying outrageously high rents it may actually be wiser and more affordable for you to buy a home instead of renting.
There are a couple of questions you should ask yourself if you’re still renting but you’re thinking about buying in the next three to five years. The biggest question is one of your long term stability, do you see yourself living in the same area working the same job for a long time? If yes then you should consider investing in a home instead of paying someone else’s mortgage. How much would a mortgage be for a suitable and similar sized home in your area? Do a quick mortgage calculation on Google to find out how much you can afford. If your results show that you’re paying more for rent than you’d be paying for a mortgage for a similar amount of space then you’re just the right person to rent-to-own a home.
The main financial reason to buy a home instead of renting is fairly obvious, renting is not an investment. It really doesn’t make any sense to spend all that money every single month to simply have a roof over your head. Renting really is a waste of money as you don’t get any return on the money you’d have to spend anyway. Why rent when you could spend the same amount of money or in some cases even less and be building your personal wealth at the same time. You should look at a home purchase as a long term savings account and not as a monthly expense because really you’re just paying yourself in the long run.
Now, aside from the reasons we’ve already been over above, there’s also a little secret you may not know about renting to own. Buying a house through a rent-to-own can actually be a better deal than buying a home in the traditional way. Here’s why. If the market is hot, like it is right now. You may actually end up spending five to ten percent more on a home three to five years down the line due to the increase in home prices if you buy the traditional way. BUT, with a rent-to-own home you can actually contractually lock in the home price right away. When the time comes to stop renting and buy the home, the owner can’t increase the previously agreed upon price. Great deal, right? Furthermore, all that rent you’ve been paying actually goes towards the purchase of the home too, so you’re not just throwing your money away.
What are you waiting for? If you plan to buy a home in the next three to five years then go ahead and take a look at our rent-to-own home listings and find a home today.