Marry the House and Date the Rate

I get many emails from people who are distraught that their rents are going up anywhere from $100-$600/month. It seems the average rent increase is about $200-$300 a month.

Here’s the difference between renting someone else’s house, and owning your own home.

1. There is no rent control in Washington and 10% rate increase per year is pretty standard based on my research. My mortgage does not do that.

2. Marry the House. Date the Rate. Interest rates are in a constant state of fluctuation, and while you marry the house, it is easy to date the rate and refinance to a more attractive rate later. A home is meant to be a long term commitment.

3. Renting is hard. Owning a home is hard. As a homeowner, if something goes wrong with my home, or it needs maintenance, that is on us. Hate my neighbor? Want more privacy? I am planting a nice laural privacy hedge. I can’t just up and move. I am not worried that someone is going to sell my home from underneath me. I can paint ALL the walls. I can have pets without an extra charge. I am not worried about my monthly payment going up 10%-13% every year. With renting though, if you hate your neighborhood, it is easier to move. If something breaks down, or needs maintenance, you can call your landlord, or rental company, and (maybe) get it repaired at no cost to you.

4. Costs of moving and buying, or selling. If you are renting a home, and have to move because of your neighbor, or because the landlord is selling your home, there are costs to that. You have 1st & last payments. You have security & cleaning deposits, pet deposit, pet rent, etc. You are looking at between $6,000-$7,000 to move. You can buy a home with that…and it is YOURS. No more major rent increases.

If you take care of your home, it will take care of you.