Are you still renting a home or apartment for yourself or your family? If so, you're losing money. Think about these three ways you lose money by renting:
1. You're paying for someone else's mortgage payment. You're missing out on the appreciation that the property gives to the landlord. Appreciation is a term used in accounting relating to the increase in value of an asset, which means in real estate terms, added value to the property. Over the past five years, houses appreciated significantly, making many new real estate investors quite wealthy.
2. Renters don't get the benefits of mortgage pay down. You are paying someone elses mortgage. Over the years your mortgage amount decreases and your mortgage payments will not go up over the long term like rising rents. Just think about how much an apartment costs today compared to ten years ago. A two bedroom apartment in London, Ontario leases for $1,000 today. The exact same apartment rented for $550 in 1996, when it was brand new. Home buyers who had low monthly payments in 1996, who did not refinance their mortgage, enjoy low payments and don't have to worry about rising rents.
3. Renters don't benefit from Emotional Satisfaction of Home Ownership Besides losing out on making money with real estate, renters don't get the same satisfaction of home enjoyment that benefits home buyers. Many landlords won't allow you to paint your walls in colors that you desire. Also, you won't feel like fixing up the property with custom window coverings and you get little say in flooring materials. Because you can't make your personal statement, you won't feel like you're HOME as much as home owners who feel emotionally connected to their property.
Buying Your First Home
The biggest barrier to home ownership is often accumulating funds for a down payment. People think they have to have huge dollars for a down payment. However, if you have good credit and a decent job, you can get a mortgage for a home with 5% down, and potentially zero down. With today's mortgage finance plans, you may be surprised to find out how much of a home you can afford with payments similar to what you currently pay in rent. For Example a $200,000 mortgage @ 3.5% for 25 years costs $998.54/ month. Visit www.stoprentinglondon.com