Homebuying Myth No.5: Renting is Less Expensive
What's keeping you from enjoying the benefits of homeownership?
Don't let a homebuying myth cause you to put your future on hold. Read on to see how breaking down perceived barriers and understanding the truth can help you make the investment of a lifetime.
Myth: "It's less expensive to rent, and now may not be the right time to buy."
The Truth: In some cases, mortgage payments may be lower than rental payments, and if you continue to pay rent, you'll only succeed in making a landlord wealthy! Based on rising home values over the past 30 years, buying a home as soon as you are able is a better strategy than waiting for "the right time."
Begin with the basics to achieve your goals: You need a purchase strategy. The first phase of your strategy: buy a home as soon as possible, or you may never be able to catch up to rising prices. And keep in mind that your first home is a "strategic" stepping stone to your dream home. The second phase of your strategy: be willing to make some concessions, like a smaller home or property, a fixer-upper, a home with a rental unit, one in a different neighborhood, or a longer work commute.
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