Don’t Let Rising Rents Trap You on Long Island

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Rent prices continue to rise in New Jersey. If you’re not careful you could become trapped in a cycle where you cannot save enough money to put towards a home purchase. Rent rates rise every year, but when you lock in a 30-year loan, your monthly payment stays the same.

The average landlord raises the rental payment 3% per year. That doesn’t seem like a lot, but when you rent for an extended period of time, you’re throwing away so much money. If rental units are in low demand, prices can rise as much as 20% per year. For example, in 2006 my friend had a 2-bedroom rental that cost $1,250 per month. That same property now costs more than $2,000 per month. That’s a 75% increase in 10 years!

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Stop putting money into another person’s savings.

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When you pay rent, you are essentially throwing away money. When you pay your mortgage, you’re basically putting that money into savings. Renting does not allow you to build wealth, and you could spend hundreds of thousands of dollars over the course of 30 years. Wouldn’t you rather have that money in your bank account, rather than someone else’s?

If you’d like to learn more about the benefits of homeownership, please don't hesitate to contact me!