Is it Time to Buy or Just Keep Renting?..Look at This Chart

By
Real Estate Broker/Owner with Morningside Homes, LLC 720-231-5200 DRE# ER300941

The question plaguing every tenant who wants a home of their own is whether they should continue to rent or is it the right time to buy?Rent Vs Buy


The combination of good prices and low mortgage rates make it considerably cheaper to own than rent in most markets.

Assuming a person is qualified with a down payment and won't be moving for several years, there may not be a better time to buy a home.


In the example below, the total house payment is $1,281.01 compared to $1,500 to rent the same home.

Before you consider any of the financial benefits attached to home ownership, it's cheaper to own than to rent.


The net cost of housing falls to $764 or just more than half the house payment when you consider the principal reduction due to normal amortization, a modest appreciation and the tax savings along with a reasonable maintenance expense that a tenant would not have to pay.


One of the biggest benefits is the growing equity. As the value goes up, the unpaid balance goes down. A favorable leverage causes their low down payment to grow to $40,609 in a short seven years based on a modest 1% appreciation.
There's an expression often heard in real estate circles: "Whether you rent or buy, you pay for the house you occupy." You're either buying it for yourself or you're helping the landlord buy it.
Check out aRent vs. Ownto see how your numbers will compare to this example or call me to do it for you.

Posted by

Buy or Sell with Patty Clark              Denver/Aurora Co. and surrounding areas 

Chris and Patty

    Helping Families Move with Care

  If you would like to be sent properties on a daily or weekly  basis just call or email me and let me know your wants and  needs. A match will be made with a home you love and with  monthly payments you can afford. I specialize in first time                       home buyers and sellers who are ready to make a move.

                                                    

 

Morningside Homes, LLC
patty@morningsidehomes.com

www.morningsidehomes.com
Cell: 720-231-5200                       CRS,GRI,WCR,SFR,CNE, MRE

 

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Re-Blogged 1 time:

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Topic:
Home Buying
Tags:
equity
appreciation
mortgage
rent or buy
house payment

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Rainmaker
863,856
Les & Sarah Oswald
Realty One Group - Eastvale, CA
Broker, Realtor and Investor

If one has to pay more for a monthly rent than mortgage payments...it is most definitely time to BUY!

Oct 22, 2012 03:38 PM #1
Rainmaker
487,262
Patty Clark
Morningside Homes, LLC 720-231-5200 - Denver, CO
Helping Families Move with Care

Sarah and Lester.. I would say so!  I wonder if there are those still waiting for the "bottom" to get here? If so it's too late.

Oct 22, 2012 04:27 PM #2
Rainmaker
350,242
Pam Miller
Realty Associates - Conroe, TX
Broker Associate - Water Crest on Lake Conroe

Chris and Patty - It is a great time to buy!  These record low interest rates won't last forever,

Jan 20, 2013 12:20 PM #3
Rainmaker
487,262
Patty Clark
Morningside Homes, LLC 720-231-5200 - Denver, CO
Helping Families Move with Care

Pam..I bet we have a great Spring selling season with the rates still so low.

Jan 21, 2013 01:31 PM #4
Rainmaker
1,304,536
Charles Stallions Property Manager
Charles Stallions Real Estate Services - Pace, FL
Pensacola, Pace & Gulf Breeze Property Management

Everybody is buying a home it is the fact that renters are buying one for someone else.

Jan 22, 2013 11:59 AM #5
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Rainmaker
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Patty Clark

Helping Families Move with Care
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