JL's Columbia SC Real Estate Blog: Just Because You Don't Have A Mortgage, It Doesn't Mean You Don't Pay One

Just Because You Don't Have A Mortgage, It Doesn't Mean You Don't Pay One

 

 

 You read the title correctly, if you are a renter, you still make a mortgage payment. Of course, you don't make your own payment, because you don't have a mortgage. You make your landlord's payment, and they certainly appreciate it. Because, while you're making their mortgage payment, they don't have to. They are either generating a monthly profit off of your payment, or they are basically receiving a "free" house at your expense.

 Not to say the the property owner doesn't incur some expenses. That's the reason for the quotation marks around the word free. But, I can assure you that you are helping them tremendously and if they're intelligent investors, as most are, then they are getting the better end of the deal and reaping the rewards of their decision to invest in real estate.

 By no means am I saying that there isn't a time and place to rent, but eventually, you need to get off the fence and start making an investment in your own future rather than someone Else's.In many places, Columbia, SC included, you can actually own a home for less than you currently pay in rent. There are factors that go into this, such as down payment, property taxes, and insurance. However, if you think that owing a home is a huge risk, consider this. Buying a home or investing in real estate does have it's risks, but you must think of the rewards. It's an opportunity to start paying yourself for a change rather than paying someone else. And, you take a huge risk everyday that you get in your car and go for a drive. There's a huge risk that you could be involved in an accident, but does that stop you from driving?

 

This message brought to you by www.jlboney.com.

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JL Boney, III - Columbia, SC Realtor - Coldwell Banker Residential Real Estate

 I specialize in Columbia, SC real estate and the surrounding areas, including Blythewood, SC, Kershaw County, Fairfield County, and Lexington, SC. If you are in the market to buy or sell a home in Columbia, SC or any of the surrounding areas, I would love the opportunity to speak with to see how I can help. Thanks for reading and feel free to contact me if I can be of service to you.

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Comment balloon 11 commentsJL Boney, III • October 15 2008 01:21PM

Comments

Great points JL! This is one of the clearest ways I have heard these thoughts expressed.

Posted by Mandi Perkins (Pioneer Title Agency) almost 10 years ago

Mandi- Thanks for stopping by. In all honesty, I believe this is a simple conclusion to come to if people really think about it.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) almost 10 years ago

JL - As I mentioned on another post earlier today, one of the best ways (initially) to take the step to financial freedom is to become a homeowner.  Of course it should be a plan and process and you have to make sure you consult a Professional to ensure you are in a postion to do so... but I think most would agree that paying to own sure beats paying to rent.

Posted by Jason Sardi, Your Agent for Life (Auto & Home & Life Insurance throughout North Carolina) almost 10 years ago

Jason- I agree consulting a professional is always the best idea before jumping head on into any big decision. However, it's a decision that I made very early in life and it was a great one.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) almost 10 years ago

JL, Keep spreading the message as this is the perfect time for first time buyers to purchase and the first thing is to work with a Pro to guide them.

Posted by Cameron Wilson, The Short Guy - Murrieta,Temecula,Menifee Californ (Labrum Real Estate) almost 10 years ago

Cameron- I'll do my best to spread it when I can. Thanks for stopping by.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) almost 10 years ago

JL...

It doesn't make any sense at all to rent if you have the ability to purchase!

Posted by Richard Weisser, Richard Weisser Retired Real Estate Professional (Richard Weisser Realty) almost 10 years ago

Richard- I completely agree.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) almost 10 years ago

Another great reason to buy, you have no control over your landlord paying their mortgage. As a renter you can still become a victim of foreclosure.

Posted by Beth Forbes, Your 24/7 loan officer (The mortgage help you want when you need it.) almost 10 years ago

I think it's simple too but so many people try to complicate simple things. I think it's a feeling of inferiority and they must make themselves feel intelligent by making others feel stupid. :)

Posted by Mandi Perkins (Pioneer Title Agency) almost 10 years ago

Beth- That is a very valid point.

Mandi- As long as there is a process in life, there will be someone who attempts to complicate the process.

Posted by JL Boney, III, Columbia, SC Real Estate (Coldwell Banker) almost 10 years ago

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