Just to update a recent article that I wrote on renting versus buying. You need to add the new interest rates inot the figures and the cost of owning just got a lot cheaper. At 4.75% your monthly notes falls from $1200 to below $1050 per month or $1043 . That is a decrease of over $150 per month.
If you currently own you may want to get the savings on the refinancing of your home or condo. I just wrote an article on that subject. Refinance you New Orleans Condo.
Who was even the President in 1971? Richard Nixon. Still in Viet Nam! Gas was under 50 cents a gallon. LSU was going to the Orange Bowl with Bert Jones as quarterback and Pistol Pete has just graduated. Royal Castles Hamburgers were 15 cents, phone calls were a nickle, bus rides were a dime and most had no a/c. Blacks were not allowed to play football at white schools until the early 70s.
New Orleans Condos, to purchase or rent? What works for you?
There are several things to consider when you are thinking about buying. The first is how long do you plan on being in New Orleans? If your answer is more than 18 months then buying may be the best way to go. Paying rent of $1200 per month is expensive and over 48 months its $57,600 and you have nothing to show for it. You will have a hard time finding a place that would sell for 200k that you could rent for $1200, but lets use the 200k price with zero down as an example.
1. Borrowing 200k at 6%, your note will be $1200 per month for principal and interest. The interest portion of your monthly payment is $1000 and will decrease monthly as you continue to pay off the mortgage. The equity in the beginning starts at $200 and is that portion that you are paying dwon the mortgage. It increases monthly. At the end of four years you should have paid the loan down about $10,000 or you have $10,000 in equity if the value of the condo is the same.
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