Why buying a home is just economically smart!

Notice that rentals are getting harder and harder to find?rent vs buy,lyn sims,northwest suburbs,

Notice that rents are increasing every year?

And according to the housing statistics that I can see the forecast is going to get worse for the renting population!  This year I have heard the same stories from calls on my CraigsList ads that rentals are hard to find in our Northwest Suburban area of Chicago. Then, if you do finally find a rental, the rent is outrageous for the condition of the place!  

Scarcity and slim pickens might make you think of an alternative to making your landlord happy every month.  The answer is to buy yourself!  I know that might seem like a blatant sales pitch but see these charts on why it actually is economically smart!

rent vs buy,lyn sims,
 
The charts are pretty straight forward and won't make your brain ache with all kinds of numbers, percentages and Excel spread sheets.

They point out that after the 3rd year of home ownership you will be ahead of the renting game and be able to have the home just as you would like to have it. 

rent vs buy,lyn sims,northwest suburbs, 

So there you have it.  A few numbers crunched in your calculator will be able to tell you whether you could be a homeownership candidate.  I bet that you thought you couldn't do it?  Let me show you how it can be possible.  There are also alternatives for down payments that I bet you didn't know about too.

Let's get a game plan going and see how we can make your wallet happy and your landlords not so much!


 
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Lyn Sims  ●  Schaumburg IL Area  ●  Northwest Chicago Suburbs  ●  (847)230-7324

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4 Comments on Rent vs. Buy - Do what's Economically Smart!

MAY
02
2012
979,163 Points 114 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

You put a lot of thought it this and the charts you made show the difference.  I had buyers in December that lost a home through their on spite -- they certainly cut their nose to spite their face.  They have been renting for over 5 years and as far as I know they are continuing.  They missed a good home when their attitude was "We're not going to have the sellers dictate what we'll pay for the house."  Well, they were incorrect. The sellers turned their home into a rental and didn't sell.  And this couple could use the tax breaks home owners provides.  Tsk, tsk.
10:23am • #1
450,736 Points 10 Featured Posts Outside Blog Called Shot Master

Nice example, easy to read number crunching. Also what it shows that if you are not planning to stay for 3 to 5 years then maybe you should rent.
10:25am • #2
226,417 Points Outside Blog Attended Rain Camp Called Shot Master

Lyn -- to have payments of $1,000/mo on that $110,000 loan, you folks must have really high taxes; as I am showing the Principal and Interest payments on that loan would be in the range of $525-560/mo.   Even with $200/mo taxes and $100/mo insurance, that puts the payback into the 2nd year even without counting the tax benefits.
10:45am • #3
MAY
03
2012
700,803 Points 39 Featured Posts Outside Blog Called Shot Master

Steven:  Thank you for your calculations. Yes, it would depend on the interest rate involved, taxes, etc.  This is just a quick guideline for people to check. 

David:  Yes, that too.  You would have to see how it all works best for you. 

Carla:  Yep, they are still renting but they are correct in their own minds!  Maybe they forgot to check their calculator in their heated discussions with the seller?
6:38am • #4

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Lyn Sims - Schaumburg Homes

Schaumburg, IL

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Schaumburg Real Estate - Northwest Suburbs - RE/MAX Suburban

Address: Schaumburg | Hoffman Estates | Elk Grove Village | and Roselle, IL in the Northwest Suburbs of Chicago

Office Phone: (847) 230-7324

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