BLOG: Is Renting Hazardous To Your Wealth?

It’s amazing how much money you pour into your landlord’s pocket over time when renting a home or an apartment.

It’s amazing how much money you pour into your landlord’s pocket over time when renting a home or an apartment.

Monthly Rent

After 3 Years

After 4 Years

After 5 Years

After 6 Years















































With interest rates at historic lows, buying power is HUGE! Let’s put this into perspective:

In 1989 the average home cost was $94,000; while interest rates were at 10 percent (payment would be $825 per month). In 2011 the average home cost was $166,100; while interest rates were 4.45 percent (payment would be $837 per month). The difference in monthly payment is only $12 per month!

Call Laura Snyder at 410.375.5779 or email laurasnyderhomes@gmail.com for a free consultation.  Let’s make your money grow for you and start paying your own mortgage – not someone else’s. For more information, visit  www.listingwithlaura.com.


This post is contributed by a community member. The views expressed in this blog are those of the author and do not necessarily reflect those of Patch Media Corporation. Everyone is welcome to submit a post to Patch. If you'd like to post a blog, go here to get started.

Samantha March 28, 2012 at 08:58 PM
Actually, I take exception to the fact that you assume everyone has to put 20% down and that the buyer is completely responsible for closing costs. FHA loans allow homebuyers to put down 3.5%. Many real estate deals involve sellers and buyers contributing to closing costs. Plus property taxes can be included in a monthly mortgage payment, where the money goes into escrow until the tax bill comes. While the point about PMI is somewhat accurate, PMI can be dealt with down the road, once you have built up enough equity in the property to refinance and remove PMI from your monthly mortgage payment. Also, feel free to search www.franklymls.com for houses in Harford county. You would be surprised what you can get for $150k!!
Karl Schuub March 28, 2012 at 10:30 PM
I'm sure Laura is a very nice person - no harm, no foul; we all understand that agents almost act as their own small businesses to where without someone walking through the door they don't get paid and things are tough out there. My comment was only meant as half suggestion/half complaint. I'd hate to think a sudden hoard of small businesses would fill this site with something other than really wanting a conversation. Maybe if it had been wordy a bit differently it might have seemed something other than an ad.
Fed up March 28, 2012 at 11:33 PM
Atleast when I rent if something needs repaired I dont have to pay for it
Eric bel air March 28, 2012 at 11:41 PM
Samantha, you sound like another real estate agent. Yes there is the FHA loan but they have their disadvantages too. And there are programs for first time home buyer's too even paying PMI- in our neighboring Balt county there's programs that assist with the downpayment and settlement expenses (SELP and MALP). And the VA loan for veterans etc... but I'm sure you're familiar with all of these already. I bought a house in Harf Co not long ago after the crash so I'm aware of the loan options and the pricing around the area. I stand by my statement $150k buys you a condo/townhouse, an older house, a foreclosure needing a ton of work (more money), or in a less desirable part of town, or a combination of the above. I challenge you to show me otherwise, especially in Bel Air proper which is where this edition of Patch is based. But that's all beside the point- this blog asks "is renting hazardous to your wealth" but was missing many points. Sure, the property tax gets rolled into the escrow as does the hazard insurance, but it still ups your per month payment. The $837 figure in the blog obviously DOES NOT include this. And I still see nothing about the cost of repair and maintenance but the reality is, it's there. A new roof costs upwards of $8000+. Renter? Pick up the phone and the landlord takes care of that. I would have much rather seen a blog weighing the pros and cons of buying, or the various loan methods & programs available, especially for the 1st time buyer.
steven bradley April 01, 2012 at 11:56 AM
You pay for it. It is included in your rent. You just don't have to write another check for it.


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