Hi I’m Jim Ryan with Team Get It Done, and this is “Rent-to-Own versus Rent versus Own.” We’re going to start with Rent versus Own first.

So first, let’s start with rent. These are actual rent payments that I, myself have paid over the course of my life. $200 (that was my first apartment), $685, and $1175. Now, this apartment actually started at $985 and it went up to $1175 over the five years that I was there. Speaking of increasing rent, we’re going to assume that rent is going to increase at 3% per year, which is the national average.

If you take these rent payments and fast forward over time, 60 months for example, $200 per month will add up to $12,000! $685, $43,000; and $1175 will be just under $75,000. And that’s just five years! Now if we look at it over 15 years, $200 per month really does add up to $44,000. $685 will be $152,000. Guys, that’s a house! $1175 will be $262,000.

So you can see, it’s a complete waste of money. If you are in this situation of rent, look, I’ve been there myself! I just want to encourage you: you’ve got to get into a house, and at least try! If you’re worried about “I don’t have a down payment,” “I don’t make a ton of money,” it’s okay, it doesn’t have to be the perfect situation. Please don’t deny yourself! Give yourself a shot. We’re Team Get It Done, put us on the case. Go to the Apply Page. It takes 10 minutes to fill out an application, at least know where you stand. I promise I won’t laugh at you, and I will encourage the heck out of you.

Now let’s compare this to owning. On a $120,000 FHA loan, this would add up to (over 60 months) $10,418. That’s a plus though! It’s a loan that you’re paying down over time. This is how much you would have paid down over 60 months.  That’s “plus” that you get, and that doesn’t include any appreciation. On a Conventional $265,000 purchase, you’d be at about $23,000 in amount paid down. On a $120,000 FHA loan over 15 years, you’d be plus $39,000. For $265,000 you’d be at $87,000 in the positive on the loan amount that you’ve paid down.

So any way that you go about this, as you can see, you are always going to win with owning a house. And I just want to encourage you, that if you haven’t taken that first step, or you know someone who is renting, please show them this video!

As far as “Rent-to-Own,” it is an absolute waste of money. I would never recommend it. “Rent-to-Own”…don’t do it! You are not a buyer, you are a glorified renter, and you can see all the reasons you should never consider doing it in the comments here.

Thanks for watching!