“I can think of nothing heavier than an aircraft; I can think of nothing less likely to fly.”
These words, spoken by poet Saul Williams, are an absolute truth. It’s amazing, that through science, dedication, and a fair amount of hope, we are able to take something over 400,000 pounds, and make it airborne.
Outside of my time at LeConte Realty, I travel a lot. I perform spoken word poetry, and host writing workshops at various colleges and universities around the country. In September, I spent 3 weeks on the road and in the sky. It can be grueling, but ultimately it is an extremely rewarding experience that I am grateful to be able to enjoy. It took years of hard work to get my 400,000 pound self into the proverbial sky, but now that I’m there, every day was worth it.
Everyone has goals that can seem impossible, but often, they aren’t very as far as they seem. A study of compiled US Census data shows that millennials are waiting longer to buy homes. There are several reasons for this. Many millenials don’t want to be swallowed in debt like previous generations. Also, this generation is waiting longer to get married, which in turn, delays major financial decisions. More than all of these, it seems there is a greater acceptance among millenials to continue renting. While there are advantages to renting, here are four reasons why you should consider ditching your rental for homeownership.
One of the most important reasons to consider buying a home is escaping the uncertainty of dealing with a landlord. In some states your landlord may decide to sell the home and you will be stuck trying to find a new place to live. Rental rates are also subject to change. With home ownership, the fear of the home being sold out from under you is gone, and, depending on the type of mortgage you have, your monthly payment will stay the same throughout the life of your loan. And at one point, the payment goes away entirely.
With renting, your ability to modify your home in any way is typically in the hands of your landlord. Which, in most cases means you can’t customize anything. With ownership you can redesign and renovate how you’d like, and even expand your home as your family expands.
3. Creating equity:
With long term rental, you are still creating equity. The only difference is, you are creating equity for your landlord and not yourself. When you purchase a car, the value immediately starts dropping as soon as you drive it off the lot. This is not the case with a home. Many pieces of real estate will not only retain their value after purchase, they will actually gain value. (Please note that this is not always the case, your local market will determine pricing)
4. Cash Flow:
Congratulations, you did it! You purchased your first home, lived in it for years, and now you’re ready for you next home. What to do with the first one, you ask? You can now turn it into a rental property once you’ve moved in to your new home. Whether you want to rent it monthly to permanent tenants, or rent it out by the week as a vacation home, your choice to ditch the rental opens up new income options that wouldn’t have existed otherwise.
If you don’t think homeownership is realistic for you because you can’t afford the big down payments, please be aware that with the Rural Development Loan program, many homes can be purchased for no money down (for qualified buyers).