I speak to many people every day who say that they are not ready to buy a home and choose to rent instead. What is sadly ironic about their choice to rent (and it is a choice) is that renters do not realize that they are paying the property owner’s mortgage, and that there is no such thing as paying rent. Rent is income that property owners receive, and in many cases it equals or exceeds their mortgage payment. This is a wonderful benefit of owning real estate. Property owners can rent or lease their property and have someone else pay their mortgage payment and more. So, if you are paying rent you are actually paying a mortgage that is not your own. Why would anyone do that intentionally? I believe that they would not do it intentionally. They would stop immediately and pay their own mortgage unless renting is a choice.
No one can escape paying a mortgage until the mortgage loan is paid off. So, the question that should be asked of all renters is why are you paying someone else’s mortgage and what are you doing about it if it is not on purpose? Shouldn’t you have your own mortgage to pay? Where is the wisdom in your choice? I can think of many things that most people need or would like to have in life, but they would never rent regardless of how low or affordable the payment is. They would just buy their own instead of renting it. For example, why would anyone rent a TV, couch, bed, or refrigerator? The only reason would be if they are living far from home temporarily and do not want the expense of moving their possessions when they will only be gone for a short while.
However, when it comes to long term housing many think that it is okay to rent and it is not okay! I believe a change in mindset is required. Rent represents the high cost of housing and prevents many from being able to save money to buy a home because of the high cost of rent. Unfortunately, the absence of financial literacy, homeowner role models, and good life and financial coaching are have led to this mindset. Talk to anyone in their late 50s, 60s or 70s, who is not a homeowner, and he or she will tell you what a big mistake the choice was not to buy a home. It was their mindset and not anything else that stopped them. If you make up your mind to buy, then you can buy.
The good news is that it is never too late to learn and to change your mindset. If you can afford to pay rent, you can afford to buy a home; especially with the Sapphire program, because it provides the down payment and more to buy a home. Join The Power Is Now live at https://zoom.us/j/5443077305 January 19, 2016 at 7:00 PM and get empowered to buy a home now. Please share this message and motivate the renters you know to buy now before it is really too late. The Power to Buy Is Now! Join the Buyer’s and Seller’s Club at www.neverrentagain.com and get started today. To get preapproved for the Sapphire program complete your application online today at www.applytobuynow.com
Eric Lawrence Frazier, MBA
President and CEO