To Rent or To Buy: Real Estate Tips from Mama

Tired of paying rent and ready to break up with your landlord? In this eye-opening episode of Your Real Estate Mama, Jan Scott busts the long-standing myth that renting is always cheaper than buying. Through the story of Jason and Beverly—a couple stuck paying too much in rent—Jan breaks down the real benefits of homeownership.

From building equity to enjoying tax advantages, Jan explains why buying a home often makes more financial sense in the long run. And for aspiring homeowners who might feel discouraged, she offers her signature wisdom and encouragement, reminding you that owning a home may be closer than you think.

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Chapters

• 0:00 Opening line and welcome to Your Real Estate Mama
• 0:53 The story of Jason and Beverly
• 1:43 Building equity
• 2:48 The long term investment
• 3:20 Predictability and stability
• 4:02 Personal freedom
• 4:17 Pride of ownership
• 4:39 It's a hedge against inflation
• 5:00 Retirement security
• 5:17 Potential rental income
• 7:04 Mama Wisdom & Inspiration
• 7:29 Outro

Transcript

Mama:
You're paying how much in rent?

(car crash sound effect then car alarm sounds)

If you're paying rent, listen up. I'm about to help you figure out how to stop paying your landlord and start paying yourself.

(Upbeat music bed)

Hey, come on in and welcome to another episode of Your Real Estate Mama with me, Jan Scott. Every week, I share tips, know-how, and encouragement for buyers and sellers. My mission is to educate, inform, and help you make wise choices on your real estate journey. I've been wrangling the real estate market for over 35 years.

Along with this gray hair comes a whole lot of wisdom. Thanks for coming. And if you're new to the podcast, I sure hope you subscribe. Let me tell you about Jason and Beverly. They called me one day asking for advice on buying a home. One of the first questions I always ask is, "How much are you currently paying in rent?"

When they told me the amount, I was floored. I literally had to take a deep breath. "You're paying how much in rent?" I said in mama fashion. "No, no, no, we need to put an end to this immediately." It turned out that they had been following bad advice. They were under the impression that they needed 20 percent down and six months' worth of savings before they could even think about buying a house.

Advice that didn’t come from a mortgage lender, but from well-meaning friends. Did you know that in many cases buying a home could actually be cheaper than renting? Here are a few reasons why. Let’s talk about them.

You build equity. When you pay rent, that money goes directly to your landlord, who also enjoys the property's appreciation over time. But when you pay a mortgage, each payment builds your equity—your ownership in the home. As you pay down your loan, your home appreciates in value. Your equity grows. It contributes to your net wealth.

I always tell new buyers, don’t think of your mortgage payment as a bill every month. Think of it more like a savings account. If you bought a home three years ago for 300,000 and it appreciated by 5.5 percent each year, that’s 16,500 a year. So in three years, you'd have built 49,500 in equity by now. That data comes from ceicadata.com if you want to look it up. 

When was the last time your landlord shared any of that money with you? Exactly. That's what I thought—they never have.

Next, let's look at the long-term investment. Real estate tends to appreciate over time, making it a solid, long-term investment, particularly in a stable or growing market. I remember back in the ‘90s when the stock market was really shaky, and I told my accountant I preferred to invest in real estate.

He doubted me, but after I sold a beachfront condo eight years later for a significant amount of profit, he had to admit, real estate was a far better investment than his stocks.

The next example of why buying is better than renting is stability and predictability. With a fixed-rate mortgage, your monthly payment remains consistent, unlike rent, which tends to increase over time. This financial stability allows for better planning and peace of mind, especially in volatile real estate markets.

And there are tax benefits. Homeowners can deduct mortgage interest and property taxes from their income taxes, leading to significant savings, especially in the early years when interest payments are at their highest. Rent, on the other hand, offers no such tax breaks. We all want a tax break, don’t we?

And then, you have personal freedom. When you own your home, you have the freedom to decorate, renovate, and modify the space however you like. Hey, if you want to paint your walls flamingo pink, go for it.

Here’s another reason buying is better than renting: Pride of ownership. There's a deep sense of accomplishment and security that comes with owning a home. It’s about establishing roots in a community, building relationships, and creating a stable environment for your family. Personally, I love my subdivision, and my neighbors feel like family.

The next example of why buying is better than renting: It’s a hedge against inflation. As rents rise with inflation, your fixed mortgage payment remains the same, protecting you from rising housing costs. Plus, your home's value may appreciate, preserving and growing your wealth over time.

And then we have retirement security. If you pay off your mortgage by retirement, you'll greatly reduce your living expenses compared to renters, allowing for more financial flexibility. Your home's equity can also serve as a financial cushion in your later years.

One of the last benefits is potential rental income. That’s where you become the landlord. If your home has extra space—a basement, an in-law suite, or even a spare room—you can rent it out for additional income. This can help offset mortgage costs and become a source of passive income.

While owning a home does come with responsibilities like maintenance and repairs—hey, yes, you do have some responsibilities—but the long-term benefits can often outweigh the challenges, especially if you're financially ready. That’s exactly why Mama’s here.

I’ve heard so many young people today say, “I think it's impossible for me to ever own a home.” And I'm here to tell you, with a plan and the right team in place, it can happen. In today’s world, with all the technology and information, and with so many options, it can get confusing. Find a team you can trust and work with, even if it takes you two or three years. Work on it, and you will get there. Keep focused on your future.

That's where a fantastic program called *Last Lease Ever* comes in. We'll call it LLE for short. It’s designed by my colleague, David Sidoni, from beautiful sunny California, and it's all about helping you get on track to home ownership. If you have never bought a home before and you really want to deep-dive in, I highly recommend you go to his podcast.

It’s called *How to Buy a Home* with David Sidoni, and you can find it on your favorite platform. Go to episode 251—it’s titled *How to Stop Renting, Make This Your Last Lease Ever.* You know, he did such a great job, Mama just can’t do it any better.

I always like to close out each episode with some mama wisdom and inspiration. You may be discouraged because of higher interest rates, all the guidelines you have to go through to apply for a mortgage, but can I remind you today of what the Bible says? In Mark 10:27, Jesus looked at them and said, "With man this is impossible, but not with God. All things are possible with God."

(Outro music bed)

Well, that’s a wrap. If you enjoyed this episode of *Your Real Estate Mama*, don’t forget to leave a review, rating, or comment on your favorite podcast platform. Feel free to send me an email to jan@yourrealestatemama.com. I love hearing your questions and comments, and I'd be happy to help you find a great real estate agent anywhere you live.

Be sure to follow me on Facebook @YourRealEstateMamaPodcast. Until next time, y’all take care, happy house hunting, and remember, you should always listen to your mama.