Rent vs Own: 4 Things You Should Know
Hi, everybody! I'm Judy Mitchell with William Pitt Sotheby's Realty and I wanted to talk to you a little bit today about renting versus owning. And why it's so important you need to know 4 things.
- Build your own wealth.
You'll do that by paying down a mortgage and building equity in your house. If you are paying rent, you're basically paying the mortgage for your landlord. Why build wealth for him or her when you can build it for yourself?
- Your monthly payment is locked in.
The great thing about owning your own home is that your monthly payment is essentialy locked in. When you rent, you never know when there's going to be a rent increase or maybe the property is going to be sold and you're going to have to find another place. But when you own, you could have fixed mortgage payment. Which is great because then you can plan all your expenses around it.
- You have the freedom to customize your living space.
When you rent you cannot customize your living space. Hey, this is important! This is your home, it's where you live. Wouldn't it be great to have the ability to have the colors you want, to the kitchen you want, the bathroom you want - and really customize that space to make it your own. Any dollar that you spend improving your home is for yourself and for your own enjoyment and hopefully will build equity in your house not your landlord's house.
- You will likely owe a downpayment and closing costs.
A great reason to own versus rent is that any of the fees you are paying your landlord - like for example, a security deposit or pet fees, or anything like that - all of that money you pay to your mortgage, use it for closing costs, use it to pay down the principal on your loan. That will help you build equity in your house which is absolutely the quickest way to build wealth in your lifetime.
Those are four great reasons to own versus renting. Now, it's not for everybody at all times in their life. There are some times in life when it is really important to rent. Please call your local real estate agent or call me, Judy Mitchell at William Pitt Sotheby's. We'll work and walk you through the scenarios of what's best for you at what time in your life. Is it the best time for you to rent in your life or is it the best time to sell? We're here to help. Give us a call at 203-239-0093.
Feel free to share this video with somebody you know that maybe trying to decide, "Should we rent?", "Should we own?". Share the video have them give us a call, we're here to help.