This example illustrates that owning a home is cheaper than renting.
Are you currently a renter? You’ve probably heard owning a home is less expensive than renting, but today I want to share something with you that may finally open your eyes.
Let’s look at an example. If you spend $1,800 per month on rent for 10 years, and the price increases 5% annually, you’ll pay $270,000 in total for rent. Not only is that a ton of money, but you aren’t getting any equity out of it.
Now let’s say you buy an average home in Charlotte for around $350,000. Your monthly payment will still be around $1,800, but now you’re building equity. Not only that, but you don’t have to worry about that $1,800 number going up. You’ll also save about $40,000 in tax-deductible expenses over 10 years.
In total, over 10 years, you’ll pay $270,000 to rent and $170,000 to buy. That’s a savings of $100,000, and it doesn’t even take equity into account. When we factor in an appreciation rate of 5%, you’re making even more money.
If you’d like to know more, please call or email me. I am always willing to help.
