34% of Americans are lighting their money on fire. The popular real estate trap I’m about to reveal backs you into a corner that’s hard to get out of.
What I’m talking about is the renting trap.
If you’re currently in the 34% of Americans who are renting, you need to STOP! If you’re an owner, I’m about to reveal a tool that’ll SHOCK you…
It’s time to stop shelling out money when you should be raking in cash…
If you’re in the 34% of the population that’s renting, you might as well skip paying your landlord and throw your money in the garbage—it’s pretty much the same thing.
The average monthly rent for a U.S. resident is $1,800. The average monthly mortgage payment is $1,400. Right off the bat you can see the point I’m making. But there’s more to it…
From the numbers above you see a monthly difference of $400. While this is a nice little chunk of change, it would barely cover your groceries for the month.
Consider looking at the bigger picture.
When you finance a car, you pay b amount for c months, until the car is yours. You can then do what you want with it.
When you lease a car, you pay x amount for y months, and then you give the car back. Your next step in this cycle would be to find a new lease.
You see where I’m going with this?
Why would you want to rent (or lease) your house when you could buy it for a lower monthly payment?
This is why there’s so much money to be made in real estate. So many people are willing to pay somebody else to own the property they reside in.
When the property is being sold, the renters don’t make any money, but the property owner tends to make a nice profit.
Use the Rent vs Buy calculator at smartasset.com/mortgage/rent-vs-buy to calculate the difference between buying and renting in your city (or a city you’re considering moving to).
Think about the profit that your landlord makes each month off you alone. Now flip things and become the landlord. If you’ve bought a house and need to move, rent it out. It’s evident that the rent paid will cover your mortgage payments and you’ll be making a profit each month.
At this point, you can move on to another property. Just keep in mind that the real estate industry is always finding new ways to reel you into the renter’s deathtrap.