Stop Wasting Money— Why You Shouldn’t Delay Buying Property
Renting an apartment is something most of us will experience at some point in our lives. If you live in a major city, you are likely paying about the same or more for rent as you would if you paid a mortgage to own that property. There is nothing inherently wrong with renting, but most people don’t realize just how much money they are throwing away in rental payments, especially if renting for more than a couple of years.
In the scenario below we analyzed the costs of renting a 2 bedroom, 2 bathroom apartment in River North, one of Chicago’s most popular neighborhoods.
- Condo Price = $450K (includes 1 garage parking space)
- Down Payment = (10%)
- We used 10% for this example but programs exist for as little as 3.5%
- HOA = $500
- Taxes = $500
- Monthly Total = $2,899
- Rent = $3500
- Parking = $250
- Monthly Total = $3,750
The difference in payment is $851/month. You also get mortgage-related tax breaks (income dependent) of roughly $6K per year, which is another $500/month in benefit. Finally, you’re also building equity at the rate of approximately $200/month during the first two years of your mortgage amortization (this figure will go up each year). The total approx. benefit to own versus renting come in at $1,551/month.
Let us put that into perspective for you.
…in 1 year you give away $18,612. That’s two first class round trip tickets on the Emirates Airlines to the Maldives.
…in 5 years you give away $93,060, that’s all of your student loans.
…in 15 years you would save $279,180. This gets you most of the way to Mars on a SpaceX.
Stop making your landlord rich. Today’s first time condo buyer is tomorrow’s landlord when you move out and rent out your space for an incredible return (we can help with that too!).
If these numbers aren’t enough to get you on the phone with us, we also have some incentives for our Vesta renters. If you are currently leasing with Vesta and are worried about breaking your lease, don’t fret. We want to make it as easy as possible to own property, so we’ve come up with a Lease Forgiveness Program. This means that if you are renting with Vesta, we can help cover some of the costs of your outstanding lease and get your apartment subleased so you’re not tied down to purchasing property that coincides with your lease end date.*
We also have a partnership with our lender, Stonehaven, and together we will put $1,000 towards your closing costs.* Additionally, our partnership with New City Moving gets you a deal on your moving costs.* Don’t throw away any more of your money and talk to RNP about getting you started on the smartest decision you’ll ever make!