Why pay rent when you could own?

By Eric L. Cromedy, Realtor Associate, Nextage M3 Realty Group

Interest rates are at an all time low and with great tax benefits, you can't afford not to buy a home right now.  The best way to get close to buying your dream home is to buy your first home.  A home is the largest financial asset most people have due to equity and appreciation over time.

If you took out a 30 year fixed rate mortgage for $150,000 and made monthly mortgage payments of $900, you'd pay $324,000 in mortgage and interest payments over the life of the loan.  And after 30 years, you'd own a home with an appreciated value potential of $364,000 (at 3% annual appreciation).  Keep in mind that appreciation rates vary greatly based on local conditions.  Compare that to paying $800 per month in rent over 30 years.  Even if your landlord improbably never raised the rent you would still spend $288,000 and own nothing.  

I know everyone isn't suited for home ownership, but for me, home ownership is a ticket to an affordable retirement and the reason I can plan for my two boys to go to college and why I can look forward to a last pit stop at a really nice retirement community.  I can't imagine trading that security for the short-term freedom of a rental home.