Rent vs Buy Would you rather have more money or less money? Even people have that more than enough money choose to have more. Now, if you are renting a home or an apartment and paying more than $961 a month continue reading because these points are meant for you to read. Side note - New York Times did a quick analysis on why renting for $961 a month or less is less expensive than buying a home. You can check that out if you like. The link will be below. 1) Interest rates are at an all-time low. We have seen some mortgage companies with deals go as low as 3%. These are the lowest we have seen since 1971 and they have been as high as 18%! 2) The numbers don’t lie. For example, if you found your ideal home for $300,000 at an interest rate at 4% that would equal about $1,430 a month. Now say for instance you wanted to wait a year because you had a lot of work piling up and you were too busy or were not sure about buying a home yet or whatever. That same home would now be worth about $320,000 at an interest rate at 5.25% which equals $1,767 a month. That’s an extra $4,044 a year you could have saved. 3) The value of homes typically increases as the year’s progress. Especially since our great recession. With that, we are in the beginning stages of a real estate boom and with all the opportunities around with low interest rates and our soft market, this makes this year one of the most opportune times to buy a home. 4) All the great advantages of owning your own home: -general privacy -costs are predictable because mortgage rates are based on a fixed-rate -you can actually add improvements that made your living space more pleasing -now that you would be paying taxes, you could let your voice be heard in your own community -freedom to do what you wish -pride in ownership These are only some of the benefits of buying a home. There are many more out there and differ from person to person. But as you can see the opportunities are out there. If you don’t take it, someone will. nytimes/interactive/2014/upshot/buy-rent-calculator.html?_r=0&abt=0002&abg=0
Posted on: Sat, 03 Jan 2015 00:56:46 +0000
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