What To Know About Owning vs Renting
Is Renting “Burning” Money? How the Average American Spends $330,000 on Rent Before Buying a Home
For many Americans, renting is often seen as a temporary solution—a stepping stone until homeownership becomes a reality. However, the numbers reveal a surprising truth: the average American spends around $330,000 on rent before ever buying their first home. Typically, people rent from their early 20s until the age of 35, making that more than a decade of payments without building any equity.
Is Renting Really “Burning” Money?
At first glance, it may seem like renting is throwing money away. After all, unlike a mortgage, your monthly rent payment doesn’t contribute to an asset you can eventually own. Renting provides no long-term return on investment, and every dollar spent goes toward someone else’s property, not your own.
But it’s not always that simple. Renting offers a level of flexibility and lower financial responsibility that homeownership does not. You aren’t tied to a 30-year mortgage, nor do you have to worry about major repairs or property taxes. For those just starting out in their careers or those unsure where they want to settle long-term, renting can be a sensible choice.
Why Buying a Home Can Be a Better Investment
Owning a home is more than just having a place to live; it’s an investment in your future. With each mortgage payment, you’re building equity—a portion of your payment goes toward owning more of your home. Over time, your home may appreciate in value, which can significantly increase your wealth.
Beyond the financial benefits, homeownership also provides a sense of stability and control over your living environment. You’re no longer subject to rising rent prices or the possibility of having to move because a landlord wants to sell.
Is Homeownership Always the Safest Bet?
While owning a home can be a smart financial decision for many, it’s important to recognize that homeownership comes with its own risks. The housing market can fluctuate, and not every market guarantees appreciation. There are also costs to consider beyond the mortgage, such as property taxes, maintenance, and potential repairs.
Before making the leap, it’s crucial to evaluate your financial situation, long-term goals, and the current real estate market. For some, continuing to rent may make more sense if they’re not ready for the long-term commitment of a mortgage.
Making the Right Decision for You
At New Horizon Mortgage, we’re committed to helping you make the best decision for your unique situation. Whether you’re tired of renting and ready to invest in yourself, or you want to explore whether now is the right time to buy, we’re here to guide you every step of the way.
If you’re ready to stop “burning” money on rent and start building wealth through homeownership, let’s talk about how we can help you find the right mortgage solution.
Contact Us Today
Ready to make the leap into homeownership? Get in touch with us at New Horizon Mortgage and start your journey toward financial stability and a place to call your own!