I recently had the opportunity to interview your landlord and I thought I would pass along some of our conversation to you!
I understand you're paying around $800 a month in rent on your Meridian home, so we’ll use that to make the math easy.
1 year -
$9,600 paid in rent. Almost ten grand. Well, that’s not so bad right? At least you have the ability to pick up and leave whenever you would like. Except for those pesky leases. You can't even sell one of those. You also don’t have to worry about having too many responsibilities either. No need to have too many grown up duties at this point in your life.
“Oh I don’t know what I would do without these renters! I pay less a month on the mortgage than they do in rent and I am going to own the home soon while they’ll have nothing to show for it! Bahhaahahahahaha….Mwhahahahahaah! One year down, 29 to go! They haven’t missed a payment yet, but I can't wait until they do so I can collect an extra $100! This should be illegal.”
Let’s fast forward now to year 5.
5 years -
$48,000 paid in rent. Ouch…that is a pretty big number. Five years is also a pretty long time not to be able to put a nail in the wall or paint a room the color you love. I’d say that after 5 years, you are probably fed up with your neighbor that listens to music too loud and too late. You’ve also got the other neighbor that yells at their kids for everything. Let’s also try and forget about all of the money in taxes you could have saved by writing off the interest on your mortgage if you owned your own home (see video below).
“For five years these folks have been paying my mortgage as well as financing my morning latte’s. Fools! If only they had bought their own home 5 years ago they could be the ones laughing! Now, how do I raise their rent without them realizing that they could own a home for less? Mwhahahahaahah….Bahhahahaaha!”
Let’s move forward another 5 years.
10 years -
$96,000 paid out in rent. Most of us have never seen that much money in our lives. You could be 1/3 of the way towards paying off your home in a traditional 30 year mortgage or further at this point had you purchased that home you’ve always wanted. By this time you are immune to the neighbor listening to music and the other neighbor yelling at their kids. In fact, you look forward to it like someone might look forward to their weekly sitcom. What was the reason you were putting off purchasing your own home for again?
“Wow! After 10 years of these renters paying my mortgage for me with me adding a little bit extra to the payment, I’ve paid off the home! It’s smooth sailing from here on out. I even have their cleaning deposit working in the stock market as we speak!”
I hope some of these comments helped get your attention. If you are renting and you have the ability to purchase, you really need to ask yourself, “Why am I renting?”. If you are renting and you don’t know if you have the ability to purchase, you need to contact me immediately at (208)284-0829 or e-mail me
to find out if you are in a position to own a home. Below is a brief video on the benefits of writing off mortgage interest.
I hope you enjoyed this fun blog on why you should be paying your own mortgage and not your landlords.
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