Are Some People Just Meant to Rent?

The burning question of the day: Is homeownership for everyone, or are some of us better off renting?

Alright, folks, let’s dive into a slightly controversial topic. Our very own Chad Helmcamp (you know, the mortgage guru) was asked a tough question recently by Kris—who, by the way, prefers to stay behind the camera. Hey, we get it, sometimes you’ve just gotta stay out of the spotlight.

The question? "Do you think some people are just meant to be renters?"

Now, that’s a loaded one. But Chad, being the professional that he is, did his best to give a well-thought-out answer. Here’s what he had to say:

Renters vs. Homeowners: The Ultimate Debate

First off, Chad didn’t exactly say that some people are “meant” to rent. That would be a little harsh, right? Instead, he believes that some people might be better off renting rather than jumping into homeownership.

Let’s face it—owning a home comes with a lot more responsibility than simply paying rent and calling it a day. Think about it: unexpected repairs, property taxes, and upkeep. If you’re not ready for those additional headaches, renting might be the smarter choice.

But Chad’s not here to crush dreams. He just wants to make sure that anyone ready to buy is truly prepared for all the ups and downs that come with homeownership.

So, How Do You Know If You’re Ready to Buy?

Great question! Chad says there are three major factors to consider: income, assets, and credit. But one of the biggest indicators of readiness is whether or not you have enough reserves to handle the costs that come with homeownership.

Imagine you just bought your dream house, only to find out your AC breaks the first week. Yikes! That’s a big, expensive repair. Chad’s rule of thumb? You should have 2-3 months’ worth of payments saved up—just in case things get a little... hot under the collar.

What About the Youngsters Who Want to Buy?

Ah, the young professionals with the cushy jobs and dreams of a home but not much saved up. We’ve all been there, right? Chad’s advice here is simple: It depends. If you’ve got a solid job and a low debt-to-income ratio, then you’re in a good spot. But it’s all about balance—don’t stretch yourself too thin.

If the savings aren’t quite there yet, don’t worry—there’s still hope! Gifts from family members or borrowing against your 401k can be options to help cover those pesky down payments. It’s all about looking at the bigger picture.

What’s the Biggest Benefit of Owning a Home?

The number one reason to own a home, according to Chad? Equity. Yep, that good old thing called equity. When you own your home, you're building something of value. Over time, that equity becomes a powerful asset, and it can even help fund other goals—like paying for college or paying down debt.

Homeownership isn’t just a roof over your head; it’s a long-term wealth builder. And who doesn’t want a little extra cash down the road?

Final Thoughts

So, is everyone “meant” to be a renter or an owner? Not exactly. Chad says it’s all about being prepared—whether you decide to rent or take the plunge into homeownership. At the end of the day, it’s your financial situation and goals that will guide the decision.

If you’re thinking about buying a home (or even renting), it’s always a good idea to talk with a trusted mortgage professional. After all, owning a home is a big step, but it doesn’t have to be a scary one.

As always, Chad’s here to help guide you through the process—whether you’re ready to buy today or still a few years away.

Want to learn more? Watch the full video on YouTube here! [Watch Video]