If you are renting your home in Detroit, there is a very good chance that you are wasting money.
Ordinarily, paying rent instead of a house payment to build toward an asset is a bad idea, anyway. However, with today's house prices in Detroit, you are probably PAYING MORE EACH MONTH.
That's right!
Right now, in many places within the City of Detroit, the amount you have to pay for RENT each month EXCEEDS the TOTAL MONTHLY COST TO OWN, even if you are borrowing the money.
Currently (at the time of this blog post), you can buy a home similar to this (below) for about $50,000, give or take.
Let's compare the approximate major monthly costs:
RENT: $800 - $950/Month
HOME OWNERSHIP (borrowing $50,000 at 6% for 30 years)
Mortgage Payment: $300/Month
Property Taxes: $200/Month
Home Insurance: $125/Month
Total Cost: $625/Month (vs. $800-$950/Month to Rent)
This is making no mention of any of the other tax benefits you get from owning your own home in Detroit rather than renting. It also does not take into account that you can build equity in your own property.
It also does not consider any help you might receive from a down payment assistance program that could be available for you.
If you're renting in Detroit, what is your REAL excuse for not owning your own home in Detroit?
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