Rents are projected to rise an average of 5.0% per year for the next ten years. If this prediction comes true, don’t be surprised that–
–Those currently paying $1,000 per month in rent will be paying $1,276 in five short years; and
–Your rent could go up approximately 65% in just ten years.
Did you know rents generally rise as much as five times as fast as
mortgage payments?
Many renters do not understand that mortgage payments do not rise as quickly as rents. This is because only a small portion of the mortgage payment, real estate taxes and insurance, is subject to inflationary pressures. The majority of the payment, principal and interest, can be fixed for up to 30 years. Assuming an 5.0% rate of housing inflation–
| Mortgage Payment* | Rent |
| Year 1 – $1,000 | $1,000 |
| Year 2 – $1,010 | $1,050 |
| Year 5 – $1,055 | $1,276 |
| Year 10 – $1,130 | $1,650 |
*this analysis does not even take into consideration the fact that the mortgage payment is tax deductible and rent is not!
So what are you waiting for? We have a special report available that explains the three economic benefits of homeownership–protection against inflation, tax deduction and building equity through leverage. Call us and ask for a free copy of The Economic Benefits of Owning Real Estate.
And, after you have read the report, let us pre-approve a mortgage for you so that you can find the home of your dreams. There is no cost and no obligation.
Call Now For Our Special Report-The Economic Benefits of Owning Real Estate
