Are You Renting A Home? You Need To Watch This!

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Let’s talk about why owning a house is way more stable than renting a house. There are definitely pitfalls of renting that everyone needs to know about.

On the surface, rents have always been a little less expensive compared to a mortgage on a house. But this can change over time, and you need to know why this happens.

Paying Someone’s Mortgage

First of all, when you are renting a house, you are paying someone else’s mortgage dwn, which means you aren’t getting any principle balance benefit from these payments. This means that your landlord is getting the rent from you and they might also be benefitting from the principle reduction on the loan as well.

Current Payments vs. Future Payments

It’s also important to consider how inflation impacts this situation. Inflation is rising (and it’s always a factor in some form), owning a house locks in your payment. On the other hand, renting subjects you to incremental annual rent increases.

It’s not uncommon for a new home owner to pay more initially when they first buy the house. But 10 years later, they might be paying $500 or $600 less than market rent.

Landlords Selling the Properties

Another big problem that’s coming up right now is affecting long-term renters. These people are being approached by their landlords who are deciding to sell the house because the market is so hot and the current value is high. Many landlords are deciding to sell their properties now to maximize the value on the sale price.

You are never displaced out of your own home if you are the owner. But if you are renting, then it means you are always subject to whatever the landlord decides to do with the asset – and you’ll be looking for a new place to live if the landlord decides to sell the house.

Focus on the Long-Term Benefits of Homeownership

Owning your own home might seem more expensive in the beginning, but don’t be fooled by this fallacy. Over the long run, owning your house is not only going to be much more profitable for you, but it will also give you much more security over time. You have more control over homeownership, especially because your payments are locked in.

Are You Ready to Buy a Home in Temecula?

If you need assistance with a real estate purchase in Temecula, then I’m just a phone call away. Contact me any time via text, email, or phone at (951) 473-0390 or [email protected].