Fear of Owning a Home
Here's a common fear that many renters have about owning their first home. Jasmin is talking to you about a common fear that many renters have about owning their home.
The BIGGEST fear? Commitment. The reason this freaks people out is because this commitment is not only committing to pay for something for the next 30 years, but probably pay for something that might be a little bit outside of your comfort zone or maybe something that you're used to paying.
The reality actually is that you've already committed to being a lifetime renter. And really, if you think, oh, I'm not gonna be able to afford my mortgage, that's probably gonna happen to your rent, as well because rents are increasing every single year. If there's that fear of the commitment of, what if I can't pay my mortgage, that same fear is also within renting, as well.
The major difference in what you're doing is paying for something that's actually appreciating. So you're paying money every month, but you're paying for an appreciating asset that will hopefully, in turn, build you some equity down the line if you choose to sell and buy something different, or if you choose to keep it and have renters in that, as well, because when you're renting, what you're doing is you're making the person that owns that property more wealthy.
To put it in perspective, if your rent is $1500, over the course of 10 years, you're gonna be paying $90k in rent. That's basically money that you can just think of going down the drain. You've never gonna see that again. Now, if you are renting $1500 a month for 20 years, that is $360k. That's the price of many homes here in Whatcom County.
What we're trying to explain is just the fact of understanding that by not buying a house, you're committing to being a renter for the rest of your life. And still essentially, gonna spend the same amount of money. One will give you a return over time. One, that money will go away and you'll never see it again.