Pay Yourself, Not Your Landlord
Sorry about my absence last week. I too need a holiday. But I am back and this week's reason for buying is the difference between renting and buying.
Many people complain about the fact, when it is time to pay rent, that their hard earned money is going into somebody else's pocket. The landlord's pocket. And as it turns out, often it is the same somebody who is supposed to fix that front step of the house you and your family are living in or replace their run-down washer that won't wash your clothes properly or won't answer the phone when you need them.
This doesn't have to be. For when it is your own home, that same hard earned money that used to go to rent, will now become part of your investment. And when you sit down with the bank to negotiate your mortgage, you have the opportunity to choose how you want to pay your mortgage. Unlike when you negotiate your rent. And sometimes it's not just the rent you have to pay....sometimes there is key money (although that is illegal).
And speaking of the bank; although some of it goes to the bank, another portion goes to your home and stays in your home. Actually you are building the equity in that home and you are increasing your value as an individual and your ability to borrow in the future.
Also an important fact to remember, is that as time goes on the portion that goes to the bank gets smaller as the principle portion of the mortgage gets smaller. Unlike your rent, which stays the same the whole time and in fact increases over every year.
Another important fact to remember is that the rent you are paying to your landlord is probably helping your landlord buy the home you are living in. Wouldn't you rather be paying for your own home?
This is yet another reason to Buy A Home.
Another important reason next week.