Are you currently renting your home? If you’re smart, you’re not. Owning a home is the smartest financial decision one could make. And the earlier in life you make this decision, the better off you’ll be when you get older.
Let’s say that you are currently renting. In this area, a nice rental will probably cost at least $2000 per month. That’s $24,000 per year. If you keep renting over a long period of time, say 30 years, considering that the rental rate will increase, you could easily pay over $750,000 in rent. But if you were to purchase your home, that same amount (or probably less) would’ve paid off your mortgage and you would own the house free and clear. That’s without calculating the tax benefits of home ownership.
The average homeowner has accumulated 39 times more wealth than the average tenant.
Even if you don’t realize it, one way or another, you are paying a mortgage. Do you want to make payments on your mortgage and increase your financial wealth? Or do you want to pay the landlord’s mortgage?