by Jasmine Zapata, MD
Welcome to this week’s issue of Brown Girl Green Money. We are a collective of women of color working to reach financial freedom and inspire each other along the way. Thanks so much for joining us again this week.
Today, I want to introduce a new series that BGGM will be exploring. Recent data suggests that there are still racial disparities in rates of homeownership in the U.S. — We want to change that statistic! This month, Brown Girl Green Money will be exploring the pros and cons of renting vs. buying, briefly discussing real estate investing and interviewing various banking professionals regarding how to best improve the state of your personal finances and position yourself for homeownership in the future, if that is your desire. I’m very excited about this series. Personally, I’ve been a homeowner 2 years now so have now been able to experience a bit of both worlds. I’ve had my ups and downs as both an owner and a renter and I definitely see the advantages and disadvantages of both.
Some of the advantages of owning I have enjoyed include the pride of ownership, potential tax benefits, freedom to redecorate/remodel as you choose, potential to convert your home into rental property in future, lack of oversight by landlord, credit building opportunity, appreciation over the years, and potential for increase in equity over time. Some of the disadvantages, however, include being tied down to one location, high amounts of interest, responsibility of paying for major repairs, and coming up with the down payment/needing to qualify for loan.
Overall, I believe that your choice to own or rent is a personal one based on your short and long term goals, your current financial situation and your personal preference. Personally, I have enjoyed being a homeowner despite the occasional headaches it brings. Homeownership is a great way to accumulate long term wealth and a tool that can be used in our quest to achieve financial freedom. On the other hand, as my fellow BGGM sister Angela Fitzgerald states, “I think people perceive homeownership as some sort of automatic tool to wealth building, when that is FAR from the truth. It is worthwhile for each person to consider whether they are ready for the responsibilities that come with home ownership, because it isn’t as glamorous as it seems.” I couldn’t agree with her more. Join us as we delve into this topic more over the next few weeks. ☺ What are your thoughts on Buying vs Renting? Share them with us at www.facebook.com/BrownGirlGreenMoney or email us at browngirlgreenmoney@gmail.com.
Have a blessed day!
Jasmine Zapata, MD is a pediatrician, motivational speaker, public/preventative health advocate, mentor, mother, wife, and entrepreneur from the Madison area, whose mission is to heal, uplift, empower and inspire. She’d love to keep the conversation going and can be reached at www.facebook.com/browngirlgreenmoney, www.facebook.com/drjasminezapata or at browngirlgreenmoney@gmail.com.