A lot of people think of home ownership as more expensive than renting. And it is true that you spend more money on fixing things around a home you own than when you are renting. However, that ends up being much less expensive than the money you save if you keep your home for 20+ years.
How is that? When you are renting, landlords often increase the rent 3-6% per year. In San Diego, rents have increased 3% in just the last 6 months according to Rent Jungle. Three percent is a $30 increase on a $1000 rent or $90 on a $3000 rent. Neither sound like a very big increase. However, that adds up over time.
Let’s take the example of a $2000 rent and a 5% increase. In the first year, that is $100… it’s significant, but not huge. In 10 years, your monthly rent would be $3,103. That would be an additional $1,103 per month or $13,236 per year. Even at 3%, it’s an extra $610 per month or $7,320 per year. The numbers get even bigger if you look out 20-30 years.
By buying and keeping a home, you hedge inflation that would come from renting (and you build up equity). You can see an interview I did on Smarter San Diego talking about how you can afford to buy a home and hedge against inflation.
So if you are a homeowner, congratulations! If you are not, think about the long-term savings and let us know if we can be of any assistance in helping you buy a home. It really is a big savings over time! To get started, please give us a call today at (619) 692-3630.
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We work with and for our clients to provide them the best mortgage options to help them achieve and maintain home ownership.
814 Morena Blvd #310
San Diego, CA 92110
Phone: (619) 692-3630
NMLS ID # 908271
Community Mortgage, Inc. is an Equal Housing Lender. As prohibited by federal law, we do not engage in business practices that discriminate on the basis of race, color, religion, national origin, sex, marital status, age, because all or part of your income may be derived from any public assistance program, or because you have, in good faith, exercised any right under the Consumer Credit Protection Act. Disclaimer: Programs subject to change without notice. All borrowers must qualify per program guidelines