October 10, 2023

The Equity Equation: Renting vs. Buying in Bryan/College Station

Author: Adam Edrington

Keywords: Bock Realty Group

Hello, Aggieland renters!


Are you currently renting in Bryan or College Station and considering the leap into homeownership? You're not alone. One of the most common questions I get as a realtor is, "Should I continue renting or is it time to buy?" While both have their pros and cons, today, I want to focus on one critical factor: building equity.

What is Equity?

In simple terms, equity is the value that you own in your property. For example, if your home is worth $250,000 and you owe $200,000 on your mortgage, you have $50,000 in equity. It's a way of measuring how much of your home you truly "own."

Renting: The Equity Black Hole

When you're renting, your monthly payments go straight to your landlord's pocket. While you're getting a place to stay, you're not building any equity. Essentially, you're helping your landlord build equity in the property you're living in, without benefiting your long-term financial health.

Buying: The Equity Builder

Conversely, when you buy a home, a portion of your monthly mortgage payment goes towards reducing the amount you owe on your home, thereby increasing your equity. As your home's value appreciates over time, so does your equity. That means you're essentially investing in your future every time you make a mortgage payment.

Additional Perks of Building Equity

  1. Home Improvements: The equity you build can be used to fund home improvements, which further increase your home's value.
  2. Financial Flexibility: Home equity lines of credit can provide financial safety nets in times of need.
  3. Wealth Accumulation: Over time, your home's equity can be a substantial financial asset, one that you can pass down to your children or convert into cash through a sale.

Make Your Money Work for You

If you're considering making the transition from renter to homeowner, think about the long-term benefits of building equity. It's not just about monthly payments; it's about creating a financial foundation for yourself and your family.

Ready to Take the Next Step?

If you're interested in exploring your options further, I recommend reaching out to a local lender who can provide personalized advice tailored to your financial situation. Or better yet, reach out to me, and I'd be more than happy to connect you with some fantastic local lending professionals.

Remember, in real estate, you're not just buying a home; you're investing in your future.



Feel free to reach out for more details or to take the first step in building your own equity. I'm here to guide you every step of the way.


Until next time, Aggieland!