Pensacola Buyers and Renters - Rent Versus Buy - The Real Cost of Renting!
Attention Pensacola Buyers and Renters, whether buying or renting in Pensacola, Pace or Gulf Breeze Florida here is one of the most helpful post on the subject and as a Pensacola Investor I would take a look as well so as to be informed of what is and isn't going on.
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Charles Stallions, CRS, CSP, CBR, CDPS, SREE, EREI - 800-309-3414, a leader in real estate investing, buying and selling. Lead Real Estate negotiator for several investment clubs as well as investors throughout the US. Call Charles for a list of references before buying or selling you what some consider being their largest investment.
Being in real estate I hear Realtors talking all the time that it's better to own than rent. I know that the general population thinks we say that just 'cause we want to sell more houses. So let's take a REAL LOOK at why it is better to own than rent.
Set the stage: The average price (mean) of a home in San Antonio, Texas is $156,000. Given 30 years at 12 monthly payments on an FHA loan at 3.85% (today's market rate for outstanding credit score) compared to a rental payment of $1250 (including rental insurance).
Using my handy dandy rent v. buy calculator I get the following results in a full comparison:
Estimated Savings with Ownership vs. Renting
Number Of Years To Compare: 10 Concerning Rent: (Scenario One)
Rent Amount Per Month: $1,200.00 Monthly Renter's Insurance: $50.00 Concerning Home Ownership: Purchase Price: $156,000 House's Appreciation Rate: 1% (very conservative rate)
State & Federal Tax Rate: .25% (federal income tax rate varies)
Loan Amount: $150,540.00 Interest Rate: 3.85% (today's rates for prime credit scores)
Number Of Years: 30 Discount Points: 0% Origination Fee: 1% Other Loan Costs: $1,000.00
Annual Property Taxes: $4,200.00 Annual Maintenance Costs: $1,000.00 (varies by owner) Annual Homeowners Insurance: $100.00 Selling Costs: 6% (varies by Realtor)
RESULTS Total Rent Per Month: $1,250.00 Total Rent: $150,000.00 Monthly Principal & Interest (PI): $1,063.74 House Total: $140,154.67 Selling Price: $172,321.05 Total Tax Savings: $235.36 Equity At Time Of Sale: $54,324.51 Money Saved Through Home Ownership: $38,760.61
Owning a home would cost $48,605.94 less than renting.
Notes: This data is for informational purposes only and accuracy of the figures hereinafter set forth is not guaranteed. The actual costs with respect to each transaction will vary depending upon the circumstances.
A you can plainly see, that owning a home is a more financially savvy way to manage your money. It gets even better over time - say 30 years.
THERE ARE OTHER (NON FINANCIAL) BENEFITS TOO!
- You get to decorate however you want!
- You get to own whatever pets that you want!
- You get a pride of ownership & accomplishment!
- You get a more stable life!
- You save money not moving every 12 months by not moving, again!
- You get a sense of community!
So what's stopping you from calling me today?
CATHY BUREAU Broker/Owner
MBA, REALTOR, GREEN, SFR, ECOBROKER
(210) 378-2489
www.GreenHomeRealtyTexas.com
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