What is more desirable – to be in an apartment paying $900 per month in rent, or being in a $200,000 plus home with a $950 net mortgage expense per month?
Is it better for the principal payment of a monthly loan repayment building equity in one’s own home, or having a landlord raise one’s rent each year while building his equity?
Watching your home increase in value over time is certainly more desirable than watching your landlord’s rental property increase in value over time! After 30 years of making rent payments, the wealth of one’s monthly rent payments adds up to 30 years worth of canceled checks.
Living the American dream and owning your own property free and clear one day is only delayed by continuing to pay rent. One must consider that, over time, rents will continue to increase, as mortgage payments tend to remain quite stable. By owning a home, on average it will be the value of one’s home that will continue to increase, rather than the monthly payment!