Everyone at some point considers the idea of buying a home. Some earlier, some wait a little longer. Often there is a moment where rent is no longer an option. I can help you consider how much house, your "cheap" rent can buy. Let's use a simple guideline: take your monthly rent and multiply by 200. This simple formula is based on current market conditions, assuming a fixed rate mortgage for 30 years and taking into account all the tax advantages of owning a house. This is just approximation, but it works quite well to illustrate the point.
Example: $ 500 x 200 = $100,000So how much you pay in rent now? $500, $750 or maybe more? You know that you could have a $100,000 house still paying only $500 a month, don't you? You know that it would be your house, don't you? If you pay rent, you are paying off a mortgage, but you do it for your Landlord, not for yourself. In few years this house will be completely paid for. It will be your Landlords asset, not yours. When he sells it, he'll move south to enjoy early retirement. You'll pay rent to another Landlord unless you buy your own house... Just think about it for a moment. And let me know when you ready! |
