The True Cost of Not Owning Your Home
There are great advantages to owning a home, yet many people continue to rent. The financial benefits are just some of the reasons why homeownership has been a part of the long-standing American dream.
Realtor.com reported that:
“Buying remains the more attractive option in the long term – that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option…as people get more savings in their pockets, buying becomes the better option.”
Why is owning a home financially better than renting?
Here are the top 5 financial benefits of homeownership:
Homeownership is a form of forced savings.
Homeownership provides tax savings.
Homeownership allows you to lock in your monthly housing cost.
Buying a home is less expensive than renting.
No other investment lets you live inside of it.
Studies have also shown that a homeowner’s net worth is 44x greater than that of a renter.
A family that purchased a median-priced home at the start of 2019 would build more than
$37,750 in family wealth over the next five years with projected price appreciation alone.
Some argue that renting eliminates the cost of taxes and home repairs, but every potential renter must realize that all the expenses the landlord incurs are already baked into the rent payment – along with a profit margin!
Bottom Line
Owning a home has many social and financial benefits that cannot be achieved by renting. Let’s connect to determine if buying a home is your best move.
Go Organic on a Budget
Organic food usually tastes better, and is better for you, but it can also be very expensive compared to non-organic products. Organic food can cost nearly 50 percent more, thanks to the extra labor required to produce it and consumers’ demand exceeding supply.
So how do you get tasty organic food without spending a ton of extra money? Follow these tips to get more bang for your buck.
Shop at farmers’ markets: You can get fresh organic produce for far less at a farmers’ market than you’d pay at the grocery store. It’ll taste just as good, and you’re getting your food straight from the source.
Choose seasonal produce: Out-of-season produce usually has to be imported, and that can really drive up the price. Focus your meals on in-season fruits and vegetables so that you don’t end up paying $6.00 for a pound of organic asparagus.
Shop more frequently, and plan your meals around bulk sales: The trick here is to only buy what’s needed for your meals, and to only plan for a week of meals at most. That way you’re less likely to throw food away, because you can use leftover produce for more meals before it goes bad.
Grow your own: A home vegetable garden will provide some extremely cheap organic produce, and gardening can also be a fun and rewarding hobby.
TIPS: Finding an Apartment to call HOME
Searching for an apartment can be quite overwhelming especially in a city like Houston. There are so many complexes to choose from and so many incentives to consider sometimes, LIke do I want stainless steel appliances or a garden tub with the bigger square footage? Decisions, decisions, decisions…
So let’s start with the area of town you’d like to live in. Consider your work commute in all cases. If you’re a native of Houston and familiar with the horrible traffic in this city during rush hours you don’t want to be in the mix of that. If you can keep that commute short and sweet and consider public transportation options, walking distance or biking time. Keep your options open, hey it could save you a few bucks too.
Next up, is to try and research the properties in your area of interest with great incentives. While they may list these incentives online for you, it is always best to call the property yourself for the most current information. Get the representative’s name, the date you spoke with them and the offers mentioned with the time frame on how long these specials will be running. Keep for your records when you prepare to apply and make sure that you are applying within that time frame.
Next up, rank your top 5 fav properties along with the incentives each have to offer and figure out which may be the better fit for you and your current situation. I would also say check out the Reviews on these properties you are considering to get an idea of the folks in the complex, search INSTAGRAM you’ll find a lot there or Facebook as well.
Ultimately, a choice has to be made, but be smart and educated about the decision you’re making. This is going to be your primary place of residency for some time until you move on to the next and your money is involved and while some consider renting to be a waste, renting just may be the best situation for you and your lifestyle! Do you boo!
So You Think You’re Grown Now?
It all begins with an idea.
I’ve always thought renting to be one’s first step at true independence and being what some like to call themselves, “A GROWN ASS WOMAN!” or “A GROWN ASS MAN”! While the law says this may be true at the age of 21, you have to ask yourself the question, “Are you ready to take all this on!?” Everyone’s life choices lead them down different paths and for some renting is an option to show their indepence in the adult world! Even with this new found independence comes preparation, see a few tips I share below on being renter ready.
Is it in your Budget, though?
A very serious question to consider. This determines how comfortable you can live. Identify how much you make a month and any expected expenses you could would have while out there on your own. Be realistic with those numbers as much as possible. Don’t forget that EMERGENCY FUND, you never want to be in a situation where you’re choosing between a car repair and your rent.
Rent is how much again? Security Deposit, what is that and why? I gotta pay for my pets too? Utilities matter too…
Upfront expenses are only a portion of the total costs associated with renting an apartment (ie…moving from one place to the other, deposits, possible first month and last month’s rent(is that still a thing?)). There are costs like utilities, parking, repairs and so on and so forth. Get clarification on repairs and maintenance (especially if you are living in a home rental property). Understand you will be responsible for paying gas and electricity, internet and cable, Don’t forget the subscriptions you may have for streaming services and also the cost to get back and forth from work or school. List out all your current and/or possible expenses as a renter, figure out what’s a necessity and forego the luxury’s at least the first three months or so to get acclimated to things….maybe even six. Financial surprises are no fun…as I’ve heard from so many, “STAY READY, SO YOU DON”T HAVE TO GET READY!”
Paperwork Needs to Stay Organized…Please and Thank You!
Most of this information may include your credit score, rental history, proof of income (pay stubs and/or W-2), and a social security number. In most cases the credit check will be performed by the complex management, but depending on your rental option you may have to complete your own credit check and there will be no need to provide your SSN at that point.
Oftentimes, you also have to pay an application fee, so be sure to only apply for apartments that you really like and are eligible for, because those fees can add up.
One of the most important things you’ll need, especially if your credit is less than stellar, is a rental reference letter. It can be obtained from your former managers, colleagues, roommates, or other reputable sources that know you well.
Now….while this list could run on and on and on…AND ON…but I’ll leave this last tip for ya!!
DON’T RUSH TO FURNISH YOUR PLACE ALL AT ONE TIME
Of course if you have the funds to do so, go with it, but it’s not like you need it right away. If anything furnish your place on a budget. Try those gently used items on a budget. Online shopping is perfect especially with this pandemic situation (article written during COVID-19/April 2020) in play. Give Wayfair and Overstock a try, they have some pretty nice pieces perfect for the first time renter! Don’t forget about Target, Walmart and other local spots in the city if you’d prefer to see it before you buy it!
If you’re interested in renting (if you’re moving to Texas give me a call) and have more questions click the link below to submit your information for apartment/renting locating services and I’ll be in touch as soon as possible but no later than the next business day!
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