Rent vs Buy: How John Locked a Mortgage Before Rent Surged
- By Jim Blackburn
- on
Client Profile:
- Name: John
- Age: 30
- Occupation: Logistics manager
- Goal: Get out of the rent cycle and stabilize monthly expenses
- Location: Austin, TX
The Situation
John was renting a 1-bedroom apartment for $1,780/month. Every year, the rent climbed — $75 here, $100 there. He liked the flexibility, but hated the feeling of having no control over his cost of living.
When his lease came up for renewal, the landlord offered him a “deal”: renew early for $2,050/month — or risk it going higher.
That’s when John found our Rent vs. Buy Inflation Calculator and realized how much he was losing every year by staying on the sidelines.
The Strategy
John had decent credit and $14K saved. We helped him:
- Qualify for a 3% down conventional loan
- Get a seller credit to cover part of closing
- Buy a 2-bed, 2-bath condo for $289,000
- Lock in a 30-year fixed rate at 6.5%
The Numbers
Detail | Value |
Monthly Mortgage (PITI) | $2,012 |
Prior Rent | $1,780 (renewal offer: $2,050) |
Rent Projected After 5 Years (w/ 5% annual increases) | ~$2,615 |
Mortgage After 5 Years | Still $2,012 |
Equity Gained (5-year est.) | ~$49,000 |
Tax Savings (avg.) | ~$1,800/year |
The Results
- Locked in a stable payment below future rent prices
- Built equity instead of making landlords richer
- Rented the second bedroom to a friend for $850/month
- Net housing cost dropped to ~$1,160/month
- Now saving to purchase a small duplex
What John Said
“I was trying to ‘wait for the market to calm down,’ but rent was climbing faster than rates. Buying gave me control — and renting out a room gave me breathing room.”
Takeaway for Readers
You can’t control inflation — but you can fix your housing cost. Every year you wait, rent goes up and prices climb. Buying sooner can protect your budget, build wealth, and give you more leverage down the road.
Ready to Take Your First Step?
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