As of 3:00PM Wed 1/19/2011 there were 4,38 Active Single Family Homes for Sale in Brevard County, Fl
Within that total there is CURRENTLY 1,429 Homes at or under $100,000 or a median price of just $69,900.....Thats 35% of the total homes below the median home prices here in Brevard...just to put this into an affordability perspective. What would a loan payment be for a purchase of $100,000 with an FHA mortgage?: $518.03 based on a 5% 30 year fixed rate excluding the upfront Mortgage Insurance Premium and Taxes/Hazard Insurance. Let's say you estimated $300 per month for the Taxes & Insurance so it would be $818.03 (keep in mind this number is strictly an estimate and would vary depending on the property)
Now let's look at Renting:
The Average Rent List Price for Single Family Homes in Brevard County are right at $1,194 per month...A number of these homes might rent for $1,000 per month so for good measure lets assume taking the lower Rent to compare:
In Just 5 Years you will have paid $60,000 In Rent to your Landlord!! Money you will not get back in return, Right?
The Comparison:
Ok After 5 Years of owning a home that you paid $100,000 and financed a base loan amount of $96,500
First the savings: You will be saving $181.97 per month by owning which equals $10,918.00 over a 5 Year Period. I don't know too many people able to bank away over $2100 per year, so this is HUGE!
Second: Our loan balance after 5 years would only be $88,614which means your home has approx $11,400 in equity.
Third:Tax benefits to Owning utilizing the Mortgage Interest Deduction EACH Year you File your Tax Returns. The amount you save here will vary but most households experience a Very Large Benefit from this deduction> Always contact a Tax Professional or Service for further clarifications.
Fourth: Real Estate Appreciation: Real Estate has always out paced Inflation by at least 1 or 2% so if you want to own a home and believe prices will eventually return to a more normal state, then This is a great opportunity!
Last: Don't forget the $60,000 that you paid your Landlord!
If your considering Renting: please contact me for a Free Rent Vs Own Scenario
Steve Vitani
Power Realty, LLC
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