If you're renting because you don't want a mortgage, I have bad news.

By
Real Estate Broker/Owner with Cornerstone Business Group Inc 0225086119
https://activerain.com/droplet/4RGg

If you're renting because you don't want a mortgage, I have bad news for you. You're already paying a mortgage. It's just the landlord's mortgage. I was reviewing a few rental applications over the past few weeks and I noticed a pattern. A lot of tenant candidates don't want to buy because they don't want the burden of a mortgage. 

Again, if you are paying rent, you are paying a mortgage. You are paying the landlord's mortgage, but you're not getting the benefit of equity build-up and a increase in your net worth, tax deductions on real estate taxes, insurance and interest. Plus, you have limited use of the property. It is the home you're allowed to live in, but you likely can't paint, landscape, build on, upgrade, change light fixtures and appliances or have a dog or cat.

Most of the applicants didn't want to add the mortgage debt because they have student loans, car payments, and credit card debt. Ironically, in this area, the rent on most properties is equal to a reasonable mortgage payment. So, if you can pay rent and still maintain a quality lifestyle with the other debts in tow, why give your money to a stranger? Why not pay your mortgage and build your own financial future through home-ownership? 

When you're ready to make that choice, give your Cornerstone Business Group, Inc., real estate pro a call. We are your local real estate sales pros.

If you're renting because you don't want a mortgage, I have bad news for you.

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Re-Blogged 1 time:

Re-Blogged By Re-Blogged At
  1. Bob Crane 06/28/2016 04:27 PM
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Rainmaker
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Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Mike - that actually sound counter intuitive.   The mortgage is not the problem.

 

May 17, 2016 03:15 AM #1
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John Meussner
Mason-McDuffie Mortgage, Conventional Loans, Jumbo Loans, FHA, 203(k), USDA, VA, - Walnut Creek, CA
#MortgageMadeEasy Walnut Creek, CA 484-680-4852

Indeed, and sometimes paying a landlord's taxes, HOA's, etc, while the landlord is reaping the appreciation

May 17, 2016 03:28 AM #2
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Jon Zolsky, Daytona Beach, FL
Daytona Condo Realty, 386-405-4408 - Daytona Beach, FL
Buy Daytona condos for heavenly good prices

Well, a lot of them can't get a mortgage. We had 2 closings in one condo building recently, and in both the owners, successful entrepreneurs, tried to get a mortgage and were rejected.

For a small business owner it is practically out of the question. So, both asked for owner financing. They will pay, no problem. But they would not qualify.

May 17, 2016 04:03 AM #3
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Dick Greenberg
New Paradigm Partners LLC - Fort Collins, CO
Northern Colorado Residential Real Estate

Hi MIke - Excellent point that many renters never seem to realize. In our market, the buy vs. rent advantage isn't even close anymore - renters are just wasting money paying rent.

May 17, 2016 04:17 AM #4
Rainmaker
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Francine Viola
Coldwell Banker Evergreen Olympic Realty, Olympia WA - Olympia, WA
REALTOR®, In Tune with your Real Estate Needs

That's funny how renters view their monthly housing bill!

May 17, 2016 12:52 PM #5
Rainmaker
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Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

Yep, they are paying their landlord's mortgage, and the landlord is getting the tax write-off and the equity build-up.

May 17, 2016 01:52 PM #6
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

I suggest this to many of my renters too, most are still renting but I did turn one into a owner last fall.

May 17, 2016 04:26 PM #7
Rainmaker
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Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Mike. This is brilliant and very very true. Well done.

Jun 28, 2016 08:47 PM #8
Rainmaker
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Bill Roberts
Brooks and Dunphy Real Estate - Oceanside, CA
"Baby Boomer" Retirement Planner

Hi Mike Cooper I thinkwe need to change mortgage qualification to "Have you been paying rent on-time for over a year?"

Bill Roberts

Jun 29, 2016 12:03 AM #9
Rainer
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Cody Carmen
Adhi Schools, LLC - Rancho Cucamonga, CA
Market Analysis--Educational Content, Adhi Schools

Mike Cooper just got here via re-blog and have to say this is an excellent article. Overall great points being made. For many people rent is throwing money down a drain for little reason. There are obviously reasons to rent (don't have a down payment yet, anticipate relocating, etc.), but buying is often the fiscally superior decision, even if people don't recognize it.

Jun 29, 2016 07:56 AM #10
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Mike Cooper, GRI

Your Neighborhood Real Estate Sales Pro
Winchester has a place for you! Call me.
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