Renting Vs. Homeownership

Renting Vs. Homeownership

Posted: January 22 2021

Rent Vs. Buying & Building Home Equity...

The advantages of owning & perks of building home equity! What you’re missing out on when comparing rent payments to mortgage payments.

Rental Payments Vs. Mortgage Payments:

It’s no secret your rent payments fly out the window after the 1st of every month. It’s totally justifiable, you’re getting your money’s worth living in a cool space with no strings attached, right? Wrong. The reality is, all that rent money is a lost investment, because you’re not building equity! Whereas making mortgage payments (which are funnily less than rental payments these days) opens the door to different financial freedoms and provides financial stability in the future.

Monthly Townhome Living Cost

Rent: $1250/monthly Vs. Mortgage:  $1170/monthly

Home Equity in 5 Years

Renter $0 Vs. Owner $47,500

What is Home Equity?

When everyone talks about this simple comparison, rent vs owning–we’re always pelleted with the words “home equity”. What does this term really mean? Your home equity is the amount of home you actually own after calculating debt.

For example: If your home is worth $300,000 at the current market value, and you owe $200,000 on your mortgage, your home equity is $100,000.

Building Home Equity Faster

That’s where we come in! When you’re ready to make your new home purchase, it’s important to invest in a home and community you can trust will appreciate over time. New communities with schools, walkable amenities such as grocery stores, parks & walking trails are key to making a smart investment that will earn you equity over time. All Landmark Home projects are built in beautiful, amenity rich communities.

Another, quicker way to build home equity is to accelerate your mortgage payments. A mortgage payment increase could be making 13 monthly payments throughout the year, instead of 12.  This is a small payment adjustment, with big impact! You’re not only building home equity, but you’re also shaving away time & interest.

Using Home Equity

Another pro to homeownership is you have access to your home equity, (once you have home-equity). The earlier you start building equity, the better, because your home equity is ultimately an asset. You can use your home equity to pay off other debts, like student loans take out a second mortgage or a line of credit. Home equity allows for more financial freedom & sets you up for a bright financial future down the road.

Why is it a good time to buy?

Low interest rates! Locking in a low interest rate is a game changer! Your interest rate is a percentage of your mortgage loan you pay monthly, for the duration of your mortgage. It’s the cost you pay for borrowing funds. When you have a low interest rate, your monthly payments are smaller & your cost of borrowing is reduced. When we say, “the time is now” we aren’t kidding! Purchasing a new home and locking in a low interest rate can save you tens of thousands in the long run. A seriously good reason to get out of your rental and take advantage of the market.


  • See return on your investment
  • Build equity
  • Be your own landlord
  • Customize your space


  • Lost investment
  • Less flexibility & freedom
  • Unfair rent increases
It’s time to get ahead, start paying yourself & start planning for the future.
Ps. Ask our sales specialists about our flexible down payment options!

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