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Still Renting?

Are you still throwing your money away on rent? Really, think about it. Every month you write that check and give to the landlord, never to be seen again as it disappears into his pocket.

Being a land lord has got to be one of the easiest jobs there is. He buys a house, just like you could, then lets someone live there while he builds equity and makes profit. Sure once in while he may have to fix something, or paint or whatever, but overall it’s a very stress free and profitable existence.

I’m not suggesting you should become a landlord, although if you did you could be taking some other poor saps money, what I am suggesting is that you look into buying. Did you know that it’s very possible, likely even, that you could be laying out less cash every month on a Mortgage than on rent.

When you own a home you in essence have a place to live for free. Every month when you make a payment on your house your building equity. Equity is money. That doesn’t even include the improvements you make. More money.

Then there’s the tax benefits. Every year when you file your tax returns for the money the Government has been holding for you, you can write off your house. Not the whole house of course, but things like mortgage interest and real estate taxes. There are write offs for making your home more energy efficient. First time home buyer write offs. In fact,this year, 2009, the Government will even give you $8000 to buy a house.

I have a story about a young man who used to work for me. He and his girlfriend rented. Every month throwing that money away, and every month complaining about it. Every month I told him “then stop it, go find a house to buy. It’s really not that difficult. Doesn’t have to be a dream house, just STOP paying rent! Later you can sell it when you want to move up, and make money instead of throwing it away!.”

Well, he did. Him and the girlfriend went out, found a small house with a nice yard, went to the bank and now they are proud homeowners investing their money in their future rather than wasting it. He is so happy. When I see him now he’s bragging about his latest remodel project, or his garden or what he’s doing with the money he’s saving. It’s really nice to see him so happy as opposed to complaining about being broke all the time. The whole process took less than a month, and he even broke his old lease because the numbers worked in his favor.

Here is an open question posted by a renter on a real estate site that asked

“I pay $800/mo. for 1 bed apt., should I just find a home for rent and hope there’s an option to buy?”

Here is the answer,

“In all honesty you should try and buy a home and quit enriching your landlord, start building some equity for yourself and become a proud home owner. Often times in that price range, $800, you will lay out less cash every month for a nicer place that is your own. It’s also a great way to hold on to your money and even grow it. Now is a good time too as economic indicators are pointing to an improvement in the economy which will mean higher prices and interest rates in the near future.”

So why are you still renting?

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July 1, 2009 - Posted by | Home, KS, nbuy, real estate, rent, Wichita

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