Home Ownership vs. Renting
Home Ownership vs. Renting
Inflation continues to make it more difficult for people to own their home.
However, home ownership remains the best investment for securing a healthy financial future.
The following information will show what it costs to rent compared to what it costs to own a home.
Options on how to financially afford a mortgage will also be discussed.
Obtaining goals is not always easy, but successful people are willing to do what unsuccessful are not.
The longer you wait to move forward in life, the further you be behind.
Renting
A typical apartment or home in 2023 costs $2,000 per month to rent.
Rent for the year would be $24,000.
Rent for ten years would be $240,000.
None of that money is refundable to you after ten years.
Home Ownership
A home in a nice neighborhood in 1935 sold for $1,375.
Homes in America have doubled in value every ten years.
1935  $1,375
1945  $2,750
1955  $5,500
1965  $11,000
1975  $22,000
1985  $44,000
1995  $88,000
2005  $176,000
2015  $352,000
2025  $704,000
A typical apartment or home in 2023 has a mortgage of $4,000 per month to own.
Ownership for the year would be $48,000.
Ownership for ten years would be $480,000.
You have paid $480,000 over the course of ten years.
You can sell your home for $716,800 at the end of that ten years.
You have made a profit of $236,800.
The benefits after ten years of ownership:
 You are financially ahead by $236,800 (Think of a mortgage as mandatory savings)
 You have not had to worry about rising rental rates.
Comparison:
Renting will cost you $240,000 over ten years
Owning will profit you $236,800 over ten years
How Much Will You Make Over The Next Ten Years?
Suppose you make $20/Hour for working.
8 Hours/Day x $20/Hour = $160/Day
40 Hours/Week x $20/Hour = $800/Week
2000 Hours/Year x $20/Hour = $40,000/Year (50 Weeks + 2 Week Vacation)
You will make $400,000 over the course of ten years.
Saving 10% of your income over ten years will yield $40,000.
Investing in property ownership will yield 6 times what income savings will over a ten year period.
How To Afford A Mortgage
Making a mortgage payment can seem impossible for many people.
There are options.
Consider sharing a home with a relative or trusted friend. Make sure you can live together for the long term.
Consider renting out part of the home to others to help offset mortgage expense.
A renter paying $1,000/month can diminish your mortgage payment to a more affordable monthly payment.
Home Ownerships vs. Renting  http://www.russ360.com/homerentvsown/index.html
