Have you ever considered how much “cheap” rent has cost you?
Look no further than statistics such as: “As of 2025, the wealth gap between homeowners and renters remains substantial, with the median net worth of a homeowner being around $400,000, while a renter’s median net worth is only about $10,000”.
Cheap rent, while seemingly beneficial in the short term, can inadvertently trap you in a cycle that delays wealth-building and financial independence through homeownership. You HAVE to break through the comfort zone, and look at the bigger picture. Before you’re completely locked out of purchasing.
Some things to consider if you’re still on the fence about buying:
1. Rent payments disappear into your landlord’s pocket. Mortgage payments help you build equity in your home, and can grow into a powerful financial asset over time.
2. Owning a home forces you to budget and prioritize. In many cases, whatever is saved on rent is spent on things that don’t really matter.
3. Homeownership teaches you to be more reliant – I learned how to paint and fix things around the house only when I became a homeowner.
4. Long term stability – While rent can increase unexpectedly, homeownership offers a predictable payment plan. Many current homeowners are in 30 year fixed mortgages with interest rates in the 2’s and 3’s.
Yes, some people just got lucky.
But in many cases, behind the perceived luck was a desire to do more for themselves and their families.
I’ve had clients with incredibly tight budgets that made it work. They increased their commute, they used down payment assistance, and they had parents helping them with gift funds.
I’ve also had clients that were incredibly INFLEXIBLE when it came to the location AND the mortgage payment amount. Most of them end up never purchasing, or purchasing much later, at higher costs.
While rent is affordable, many don’t feel a pressing need to make a change. They don’t perceive the “pain” that often drives people to buy homes, such as rapidly increasing rents or poor rental conditions.
Want a taste? Just look at what’s happening in California, due to the wildfires in combination with housing shortage.
If you think home prices are high now, wait until more and more Californians realize they’re paying a weather premium that’s not worth it, and start looking at more affordable states like ours.
This week alone I had two leads for borrowers from California looking to purchase in Utah, along with a call from a California mortgage broker in regards to a second home purchase in our State. I also met a woman who’s family from California just bought a second home in the Ogden area, and they plan on spending half a year in each State (big fans of snow sports).
There is no better time than the present to start doing something. The best time to purchase (and negotiate) is when homes are sitting longer on the market (NOW) and everyone else is waiting for Spring break to start looking.
Mortgage rates are finally starting to drop, and there’s no denying the affordability issue. But it’s not going to get better any time soon – not without significant regulation.
If you’re done waiting and gambling, I’m here to help.
Email me your questions at [email protected] or text me at 801-473-3154.
