How my landlord helped me become a homeowner
Posted on August 24, 2007
Filed Under Home Finances |
While growing up, the idea of owning a home seemed so far away. Even as a young adult, it seemed like something unattainable because of the amount of money needed - a hundred thousand dollars! That sounded like so much money (because it is), and I had no concept of what it would look like in terms of monthly payments and overall feasibility - even as a college graduate.
So, I swam with the school and did what the other fishes did: rented an apartment. Once it became familiar, I did it again every time I moved - even into marriage and parenthood.
Then one day in what was probably my 8th rental situation in my 12 years of college graduatehood, I received a notice of rent increase from the apartments I was living in. It was something like $750 already with a $180/month price increase. “Youch!” I said. You could buy a house for that much. And that is what we did.
Within a week we had contacted our very first real estate agent and joined the league of house hunters and home owners.
Upon realizing my new status, I also realized that I had been commingling with their likes already for so long. The question that sticks in my mind is “why did it take my landlord to get me to consider home ownership?”
Though I may never know the answer, what I do know is that I encourage you as well as my own friends and family to begin considering buying over renting early on.
Don’t buy before you are ready, lest you join the ranks of the unfortunate foreclosed-upons. But, when you are getting close to having money for a down payment and you can meet your monthly obligations and house payments (mortgage, taxes, and insurance), then you can begin looking seriously for a home. And, you may never get the money for a down payment if you don’t start thinking about it first (Hint: now is the time to be thinking about it if you are a renter).
Remember, renting buys you a place to live for one month, and then you do it again (and again, and again, and again….). But buying builds equity. You get a place to live, and then when you move, you sell it and get all your money back - plus some (theoretically speaking, of course).
All the best!
Stephen Dunbar
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