| Consider this: Take the 6 1/2 years when I lived in Atlanta. If my average rent for those years had been $650, by the time I moved, I had paid out $50,700. $50,700 never to be seen again... If I had bought a $110,000 home and borrowed $100,000 at 6.5% interest, my payments would have been around $650 plus a little extra for insurance and taxes, so let's say $700/month. In 6 1/2 years, my home could have appreciated at least by the national average. So, at the end of 6 1/2 years, I would have invested (not paid!) $54,600 into my home. If I sold the home for $138,000, I would not only have made a profit of $28,000 due to appreciation, but I would have gotten BACK the money I had invested on my down payment and the money I had invested into my mortgage each month, otherwise known as equity.  As a renter, I got nothing back except perhaps a security deposit...and sometimes, you don't even get that back... Bad Fido, bad boy! | Rent-vs-Mortgage Every renter at some point or another hears the lecture of how they're throwing their money away. Well, that's because it's true. According to the National Association of REALTORS®, average cost of rental housing has increased about 3% annually. For a renter paying $750.00/month, this means that in ten years, you will have paid out over $103,000. This money could easily have gone into a mortgage, an investment for your future, and given you tax advantages to boot, saving you money all around. Take a look at this chart: A Homeowner can take tax deductions for the Interest they pay annually on their Mortgage as well as for annual Property Taxes. This, combined with Mortgage Principal Accumulation and annual Appreciation, results in an Annual Cost at a fraction of what a Renter would pay.
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Helping 1st time homebuyers is probably one of the most rewarding aspects of my job. It's exciting to assist people in purchasing their first home, to educate them on the process and to share with them their pride in ownership. It isn't called the "American Dream" for nothing. If you're currently renting, making that initial decision to purchase a home can be very daunting. So daunting, in fact, it can lead a lot of people into inaction and accepting things as they are for a while longer. It's easy to procrastinate when the thing you know you need to do looks like such a massive mountain. My efforts here are aimed at turning that mountain into a mole hill. If you're reading this, you've already come pretty far. You obviously understand that knowledge is empowering and can help overcome most obstacles. Fear is something easily conquered by knowledge. That's why I created this web site, to educate and help people make informed decisions. Here's some information that may be able to convince you why owning your home is always a sound decision and why buying one may not be as far out of reach as you may think! For a complete run down of the homebuying process and information to remove the mystery and intimidation factors, check out my page on Buying 101.
Top Excuses People Use for Not Buying a Home... 1) "But I Can't Afford a Mortgage..." Some Renters argue that they can't afford a mortgage. In their minds, the word 'mortgage' is synonymous with 'unaffordable'. Well, it's not. Keep in mind, if you're renting a house, you are technically already paying a mortgage...only it's someone else's - your landlord's. So why help someone else pay off their mortgage when you can be doing the same for yourself. If you're living in an apartment complex, you are simply feeding the profit mills of some company or corporate entity. Other Renters make that affordability argument because they have their sites set outside of their budget. They have their dream home in mind and won't settle for anything less. It's almost as if they are creating their own obstacles by setting their sights so high, they couldn't possibly reach it. But it's just an excuse... and it helps them justify their current position as a renter. The nice thing about real estate is that, if bought wisely, it appreciates. Unlike a car that drops in value the minute you drive it off the lot, homes increase in value. According to the National Association of REALTORS®, the average national annual appreciation rate for homes is 4.5%. This means that a $100,000 home will be worth $104,500 in one year, $124,618 in five years and $155,297 in ten years. So for those who argue that they can't afford a home right now, talk to a lender and confirm it - you may be pleasantly surprised to find that you CAN afford the home you want through the many financing options available today! If you find you still can't afford the home you want, then compromise and look for one you CAN afford. Word of advice: Don't look at the purchase as a permanent one, but rather as an investment to help you build wealth towards your dream home. As you live in this home and the value appreciates, you can sell it and upgrade into a larger or better home. It may take a couple of years to accomplish but these are constructive years building towards something important. Renting for those same years will have gotten you absolutely nowhere. Even the government is on your side on this... see below for more info on tax exemptions! 2) "I Don't Have Enough for a Down Payment..." For years, the standard was 20% downpayment required to purchase a home. So much so that even today, many intelligent, well-informed adults living in this country still think this is so. Welcome to the 21st Century! Today, there are so many loan programs out there designed to get people into homes, it's impossible for me to even begin listing them. This is why I cannot stress enough the importance of speaking with a mortgage lender. (See Buying 101) If you're looking for a home in most areas of the country, including Glynn County, your options are wide open with many lenders offering 90%, 95%, 97%, 100% and even 103% loans, yes, 103%!!!. That's a far cry from the old 80% loans! Did you know. ...there are even gift programs out there where the Seller or other outside parties can help you with the down payment - something unheard of just a few years ago! ...that there are programs available where an engaged couple can establish an account and have friends and family directly deposit money into the account toward a home purchase as wedding gifts, eliminating the dicey paper trail that used to exist when family members gave money to other family members for down payments in the past?
...depending on your credit rating, application processes are much shorter and quicker than in the past, often with only hours to turn-around! No more waiting on pins and needles for days waiting for the loan decision!
The best thing you can do for yourself is to get informed. Don't assume anything. Even if you've had credit trouble, it may not be as bad as you think! We talk with Mortgage Lenders every day and we hear the same thing from all of them, credit problems don't have to be a problem... 3) "But I Won't Be Staying Long..." This sounds like a valid excuse...in fact I've used this same one, myself, the entire time I lived in Atlanta...for 6 1/2 years. Did you know that the average home-owner moves every 3-5 years? The general rule of thumb if you're buying or selling is that you stay put for at least 2 years for tax purposes. According to current Federal Income Tax laws, if you've lived in a home for at least 2 years (or 2 out of 5 years of ownership), you can claim up to $250,000 ($500,000 per couple) in exemptions on capital gains taxes from the sale of that home. For most people, $250,000 or $500,000 will more than cover their tax needs. These laws are designed to allow people to repeatedly buy and sell homes without penalty, unlike laws from the past.
This, of course, is really important if you're expecting sizable profits from the sale of your home. If you live in a rapidly appreciating area, this is very important when considering a short term purchase. 
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