Stop, Read the following information, you have nothing to lose!
Did you know?
The rent you pay is building someone else equity, where it can be your own!
You can start today, If you plan it wise, you could build equity while owning your own home!If you are renting this is what you are losing:
Assuming You are a RENTING.
Also Assuming you have the Best Landlord who will Never Increase Rent !
| Monthly Rent | Payments Value in 10-Years Time |
Payments Value in 20-Years Time |
Payments Value in 30-Years Time |
| $700 | $111,655 | $304,939 | $639,528 |
| $800 | $127,606 | $348,502 | $730,890 |
| $900 | $143,557 | $392,065 | $822,251 |
| $1,000 | $159,508 | $435,627 | $913,612 |
| $1,200 | $191,409 | $522,753 | $1,096,334 |
| $1,400 | $223,311 | $609,878 | $1,279,057 |
| $1,703 | $271,641 | $741,873 | $1,555,881 |
Assuming you are paying Mortgage
Assuming an Interest rate is 5.5%
| Property Value Assuming
conservative 8% Appreciation per year |
||||
| Purchase Price |
Monthly Payment |
Your Equity Year-10 |
Your Equity Year-20 |
Your Equity Year-30 |
| $300,000 | $1,703 | $647,677 | $1,398,287 | $3,018,797 |
The Bottom Line
If You Rent:
- You are spending $1,555,881 towards rent
- At the end of the 30-Year Rent you are empty handed
IF You Own:
- You will still Pay the same amount of money on mortgage rather than Rent.
- The Big shift is that at the end of the 30 years you own:
- a great retirement
- $3,000,000 (Three Million Dollars worth of Real Estate)
In this example we used Real Estate appreciation rate of 7% each year which is a conservative rate on the long run. And 5.5% Interest on your monthly payments calculation.
We did not account for your monthly Taxes which is about $312 (Based on 1.25%).
We did not mention the tax benefits you will get every year which will exceed your taxes.
You go figure the rest of the story
Yes Real Estate values fluctuate but on the long run it is a great Inflation Hedge!
