The Cost of Renting vs. the Cost of Buying: My Real-Life Experience

Sometimes I look around at the life we’re living now and think… this is exactly what I used to dream about. But we definitely didn’t start here.

My journey with real estate began in a tiny house in Swartz Creek. I was so excited when I bought it, even if it was so small that someone joked on Facebook, asking where the rest of the house was! 😅

But here’s what most people didn’t see: my mortgage and insurance on that little house were actually less than what I would have paid to rent a similar apartment. Every month, instead of handing my money over to a landlord, I was investing in my own future. The monthly payments were manageable, and I was building equity.. which is just something renting will never get you.

When I sold that house just under two years later, I walked away with about $10,000. That’s money I never would have seen if I’d chosen to rent. If I had rented instead, I would have spent thousands on rent and had nothing to show for it when it was time to move on.

Fast forward to today: the house we live in now wasn’t the prettiest on the block when we bought it, but it had the things that mattered most to us: location, land, and layout. We lived in it, made it work, and little by little, we remodeled it into exactly what we wanted. Now, the value of this house has more than doubled since we bought it. That’s the power of homeownership: not only do you have a place to call your own, but your investment can grow and open new doors for your future.

All of this to say, we didn’t start here. But real estate has a way of completely changing your life if you give it time. Renting may seem easier at first, but buying- even if it’s a small start, can set you up for financial growth and stability down the road.

Buying that tiny little house in Swartz Creek ended up being one of the best financial decisions I ever made. If you’re on the fence about renting versus buying, remember: every mortgage payment is a step toward your future, not just another monthly expense.

I’m curious though…
If you could buy your first house tomorrow, what would matter most to you?