According to Apartment List’s National Rent Report, rental prices went up $300 per month in 2021. And sources like MBS Highway expect this trend to continue in 2022, albeit at a slightly slower pace.
If you’re currently renting or are considering renting, while you may have a roof over your head, renting doesn’t help you build wealth like homeownership does.
For example, that extra $300 per month you’re spending on rent, based on current rates, would be like having a $70,000 mortgage. Meaning if you were to use that extra $300 per month to purchase a house, you would have an additional $70,000 in buying power you could put towards purchasing your dream home.
Additionally, when you purchase a home, that property continues to appreciate, helping you build wealth. But if you decide to rent, the only person building wealth through real estate is your landlord.
Contact a local advisor today to see if homeownership is the right option for you.