How much does it Cost You to Rent Your Home?
That seems to be a question that is getting really hard to stomach the answer. Rents are going up at a staggering amount and it doesn’t look like it’s going to stop any time soon. The reason for this is because of the fears about buying homes has flooded the rental market. That means there are fewer rentals out there, but more renters. It is another case of simple supply and demand.
Here is an example of how much it will cost you to own your home vs. rent your home over 30 years. Since 30 years is usually the standard for a mortgage term. If you both pay $1,500 per month with an annual rent increase of 3.2% (yes, that’s the current rate) you renters will have paid $900,000 compared to a home ownerat $540,000
Use this same scenario and let’s see how much equity you will have in your home for retirement assuming $300,000 is your current value with a 1% appreciation. Owners will have $400,000 in equity where the renters will have ZERO!
If you would like to talk more about this amazing opportunity then call me today! 253.426.8785
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