In early 2023 I met a couple, in their 60's, who had been renting their home for the last 15 years.
A friend had purchased the property they wanted...with the understanding that they could purchase the home at any stage, at Current Market Value, and that their rent would also be at Current Market Value.
Year after year the couple decided that it was easier for them to rent instead of purchasing, and here is the result.
KRG
Summary:
$ 200,082.43
Mortgage Payment
$ 307,242.80
Rental Income
$ 102,160.38
$ 102,160.38
Excess Paid
$ 286,294.43
$ 286,294.43
House Value Increase
Mortgage Principal Paid
$ 60,179.00
$ 448,633.80
$ 448,633.80
Total Difference
$ 2,492.41
$ 2,492.41
Monthly Difference if Owned
Following 15 years of home Rental vs Ownership, the couple renting have...
- paid in excess of $100k in additional Rent vs Mortgage
- out of the rent paid, over $60k was paid of Mortgage Principle for the Landlord
- house value increased by over $286k
All in all, the Landlord has seen an increase of over $448,600, or over $2,480 a .month...EVERY MONTH for the LAST 15 YEARS.
If you would like to see how Home Ownership can affect your long term wealth then please contact us for a chat...it costs nothing to talk.
Don’t be like this couple.
Time and time again they decided the pain of spending an extra few dollars on a mortgage payment vs renting was not worth it, yet every year inflation was working against them.
Action now can help secure your financial position for the rest of your lives, against the regret you will have for years to come for not having made an intelligent property purchase.
All data, including all measurements and calculations of area, is obtained from various sources and has not been, and will not be, verified by broker or MLS. All information should be independently reviewed and verified for accuracy.