Rent vs Buy? What the headlines don't tell you

With fear-mongering news headlines and uncertainty in the media, many are wondering if they’d be safer renting a home than buying. Here’s what the news sources aren’t telling you. For renting to be the best option for you financially this year, the reports suggest that you would need to put your money in other investment opportunities. Reports like this assume renters are taking the money they’d otherwise use to buy a home and put it in an investment portfolio to grow their wealth.

Unfortunately, however, reports show that a majority of home renters are not investing their capital elsewhere. Instead, they are renting and spending their money on day-to-day items which over time becomes wealth destroying.

Conversely, investments in homeownership ranks as one of the best investments you can make due to the wealth it helps you build over time. This is where we see a significant difference between a Homeowner’s Net worth and a Renter’s. The graph shows the net worth difference of a homeowner being an astounding 40x greater than a renter! 

Bottom line: Before you enter into another rental agreement, think about the financial opportunity that homeownership provides to your future wealth. If you’re still unsure if owning a home is right for you – call, text, or email us anytime! We’re here to genuinely guide you on the best time to buy a home FOR YOU and your family.