Rent or Buy? The Real Cost of Your Next Home
Download MP3🔍 Episode Description / Show Notes:
- Is your rent going up again—not just by $50 or $100, but by several hundred dollars?
- You're not alone. Rent hikes are happening across the country.
- Wondering if buying a house is finally worth it? Let’s break down:
- Common objections to buying a home today—and which ones actually hold up
- Why now might be the right time to buy
- Rent has increased 13.9% on average, and even more in some areas.
- Landlords are raising prices due to:
- Inflation-driven increases in taxes, insurance, and maintenance
- Post-pandemic recovery of missed rental income
- If you think your rent will stabilize soon—think again. More hikes are coming.
- Benefits of buying now:
- Lock in a fixed mortgage rate (even at 4.5%, payments may be lower than your current rent)
- Avoid future rent hikes
- Example: A $200,000 home with 5% down and a 30-year mortgage could have payments as low as $1,100–$1,200/month—less than many current rents.
- What about the down payment?
- FHA and HUD loans allow first-time buyers to get in with as little as 5% down.
- You’re probably already spending close to that on moving expenses, deposits, and rent anyway.
- Housing supply issues:
- Entry-level homes are disappearing
- Builders are not constructing affordable starter homes due to rising land and labor costs
- Demand remains strong, especially among millennials, retirees, and downsizers
- A $200,000 home may not be your dream house, but:
- It can be a stepping stone
- Build equity and escape the rent trap
- With rent potentially hitting $2,500 and starter homes rising past $500K in a few years, now is the time to think long-term.
- We’ll also cover:
- Tips on finding a $200K home (yes, they still exist—even near major cities)
- How to prorate taxes to help cover closing costs
- Creative ways to gather your down payment (sell unused items, time your purchase right, etc.)
📌 Bottom Line: Rent will keep rising. Starter homes are vanishing. If you’re tired of throwing money away each month, it may be time to consider buying—before you get priced out for good.
