The Benefits of Owning Over Renting

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Today, we'll discuss buying versus renting. There are three main points that I want to make about buying and renting in Chicago's current market.

The first thing to consider is rental affordability. A recent Zillow survey published in Crain's magazine revealed that in Chicago, renters typically pay 31% of their total income, while homeowners pay 14% of total income. Rental demand is skyrocketing, but percentage-wise, the monthly payments are considerably higher than mortgage payments.

Next, think of real estate as a financially leveraged instrument. That means that for a relatively small down payment, you acquire a very large asset when you buy a home. You do not need to put 20% down on a home; we will work with you to come up with a manageable down payment, such as 5% or 10%.

Finally, whether you're renting or buying, you are paying a mortgage anyway. Renters pay the mortgage by paying a landlord. If you're going to pay a mortgage, it might as well be your own. That way, you can build wealth and reap the tax benefits.

As you can see, there is an advantage to owning a home here in Chicago. If you have any questions on today's video, give me a call or send me an email. I would be happy to help you!