Hey, there. It's Kyle with the Whissel Realty Group. I want to talk a little bit about renting. Your rent's going up, probably already has gone up this year right? I know I just raised rents on every single building I own. Well, why is that happening?

Inflation

Well, there's this little thing called inflation that's been happening, and more so hyperinflation that's been happening over the last year or two as we've gone through COVID, a lot of money has been pumped into the economy. Well, that causes inflation, and pretty much everything rises. I don't know if you guys have heard about lumber, you guys have tried to get chlorine for your pool or concrete to do a remodel project. Everything is a lot more expensive. Rent included, right? As costs go up on supplies, materials, and repairs, like everything in this world, the cost goes up on all of these things. Rent's going to go up alongside that.

So a lot of times we're seeing people out there that have been voting for a lot of these policies and pushing towards all this stimulus and yay, and then all of a sudden they get a rental increase, like, "Oh, no, I don't want my rent to go up." Well, you got to understand these things all are going to come up together. But it doesn't have to be that way. You don't have to be in a market where your rent is going up every single year 'cause it's going to. Not only did it go up in 2021, it's probably going to go up in 2022. It's probably going to go up in 2023. That's what's going to happen with your rent. So you could stay in your rental and you could continue to have a higher payment this year versus a higher payment last year, versus a higher payment the year before, or there's a pretty simple solution. Buying.

Buying

The thing that everybody is so scared of, "I don't want to buy, I just want to rent so I can move around freely." Well, yeah, just know, every time you move, more expensive, more expensive, more expensive, more expensive. Here's a beautiful thing. I bought a house eight years ago. And guess what? My mortgage eight years ago is the same as my mortgage today. Well, guess how much the place I was renting eight years ago, guess how much that rent is today. It's substantially higher. So one of the best parts about owning a home is that you can fix your payments. You don't have to worry about your rent going up year after year, after year, you can lock in a payment. But there is one part of home ownership that is going to go up each year, and that's going to be the equity. Now, is it going to go up every year no matter what? No, there's going to be up years. There's going to be down years. But if you look at homes over the last 50 years, this is what the trend line looks like. Home values consistently go up over time. There's going to be down years, there's going to be up years, but over time home values are going to go up. So it's really a decision, which line do you want to be the flat line?

Do you want your payment to be the flat line? Or do you want your equity to be the flat line? Now, which line you want to be the up line? Do you want your payment to be the up line, like in a rental? Or do you want your equity line to be the upline like when you own a home? So it's really your choice. You could keep renting, you could keep having no equity and you could keep paying more every month. Or you could actually explore home ownership where you could have the fixed payments for up to 30 years. Then if you stayed there, you don't have any payment on it after that. Now you get to watch the value of that thing rise and build wealth for yourself and for your family. So if you've never taken a look at what it would be like to own a home, you should look, because there's opportunities out there for you to buy it with literally $0 down. Whether you're in the military, you're buying in rural communities, or you're in a community where it might have some down payment assistance, where the government might help you come up with that down payment.

In Closing

You really should connect with a great agent who can sit down and figure out where you're at. If you're where you need to be to buy now, great. If we need to get you over here for you to buy, that's great too. We can help build that plan for you to get you there. So you don't have to keep paying this increasing rent for the rest of your life. We would love the opportunity to help you explore that and put that plan in place for you. Give us a call down at the number below and we will make that happen. I'm Kyle Whissel with Whissel Realty Group. (619) 618-7997

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