Many people living in Conway, AR rent their homes. I have always asked them why do you just throw money away? The answer I get time and time again is, "I can't afford a house, or I don't want to spend that much money a month, or I am waiting on the INTEREST rates to go down further!" HELLO interest rates have no where to go but UP!!
A 3 bedroom, 2 bathroom home in Conway, AR, that is 10 years old, has a market price of around $110,000.00. With a 30 year FHA fixed Rate mortgage at 4.5% interest (taxes, insurance, and PMI included in the payment) would run a home owner around $750.00 a month. HOW MUCH DO YOU PAY IN RENT EVERY MONTH? And let me tell you friends we have a few houses out there on the market that would probably go for a little less than that. We need you to buy houses to help stimulate the economy!
Benefits of owning your own home:
1. You can deduct the interest and property taxes on your tax return.
2. There is no annual increase in your Fixed Rate Mortgage payment, there might be a 3% increase annually for a lease.
3. Real Estate historically tends to appreciate, So over the next 5-10 years your home will gain value.
4. FREEDOM... Yes Freedom there is no landlord bothering you, or telling you what you can and can't do in Your Home...
Renting a home in Conway, AR you will get a 3 bedroom, 2 bathroom, and 1200 square foot rental for around $800.00 a month. Benefits of renting: not responsible for fixing things, you can move on short notice.... Those are about the only benefits! Downfalls of Renting: RULES, You're paying someone's mortgage for you to live there, there are no tax breaks, etc....
So let's do some simple math!
Renting a home....
$800.00 a month x 12 months x 5 years = $48000.00
And that is you paying someone else's mortgage!! That is a lot of money you will never see again.
Buying a Home....
$750.00 a month x 12 months x 5 years = $45000.00 now I am not going to lie.... That is also a lot of money!! But remember the benefits of you owning a home? Tax deductions on the interest and property taxes each year!!! Also in that time frame you have paid down your home by $5000-7000. So it is not a complete waste of money, you are building equity in your home.
Now I have a friend who told me she wasn't ready to buy for 4 years, that friend of mine missed out on the $8000 tax credit..... But they eventually did buy a home a few months ago. Here is what they said about the whole thing.
Reasons for moving:
I truly wanted a place that was mine and that I could customize how I wanted. I couldn't hang pictures, paint the walls or even own a pet. Now that I'm in my own home I have the dog I always wanted, and I able to paint my house the colors that I like. When searching for a house to rent, I found it would be a lot cheaper just to take the plunge and purchase my own house. Instead of handing over thousands of dollars a year to the landlord to pay his mortgage, I went out and got my own mortgage for a lot less than what I was paying in rent. Ultimately I wish I would have made the decision sooner but, I think it worked out for the best. I have a great home now with my very own puppy!
Satisfied Home Owner
If you have any questions about the Local Real estate market please feel free ask them at
Buying and Selling a home is a huge Financial decision, Blake Roussel with Exit Natural State Realty is your Real Estate Professional for Conway, Little Rock, Maumelle, Benton, Bryant, Jacksonville, Cabot, and Searcy, Arkansas. My goal is to walk you through each step of the buying or selling of your home, so that we have a smooth transaction. Call Us today 501-230-6082. Customer Satisfaction is our #1 GOAL, we are here to serve you throughout this process. Check out what my past clients have said about our Customer Service. We look forward to hearing from you.
"Then Difference between FOR SALE and SOLD"