Renting Vs Buying a Home 2022 | Is it Cheaper to Rent or Own a Home in San Diego?

What’s more expensive? Renting or buying a home? Let’s take a look at a few key graphs and numbers with you real quick that’s going to show that it’s actually cheaper to own a home, and you’re going to gain so much more equity over the long term. It’s important to keep in mind that whether you’re renting or owning, everyone is paying a mortgage and paying for all the repairs on the house. But if you’re renting, you’re paying the landlords mortgage, repairs, AND you’re paying the profit for the landlord. If you take a look at this graph, it’ll show you the two different charts renting versus buying.

Here’s the differences:

On the rent graph, you’ve got the diagonal line and that is how much you’re paying in rent every single month. That goes up over time. Your equity is the bottom line. It’s zero. It is always zero. You never gain any equity in your home at all.

The other graph is the purchasing option. The diagonal line is the equity that you’re gaining in the home over time as you pay down the loan and as your home appreciates as well. The line at the bottom, the flat line, that’s your mortgage payment. It doesn’t go up. It stays the same. In fact, it’s possible that you can actually have a lower mortgage payment. We’re at higher interest rates at the moment. And over time, if interest rates go down and you can refinance and get a lower interest in your mortgage payment code can go down versus constantly going up with rent and you never gain equity at all.

So you have a simple decision to make: Which side of the charts do you want to be on? Do you want to be on the Rent side where your rents are always going up and your equity is zero? Or do you want to be on the Purchase side where your mortgage is staying flat, but your equity is always going up?

If you’re ready to talk about buying a home – call or email me today.

Curtis Chism, Realtor
858-281-2568 | Mobile
mailto:info@sandiegohomes.io
Chism Team | DRE #02105113
brokered by eXp Realty | DRE #01878277