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?
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.
 |
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.
Sue Lawrence
and Ken McCormick can be reached at 806-355-9601. Prudential, Ada REALTORS is an independently
owned and operated member of Prudential Real Estate Affiliates, Inc., a
Prudential company, an Equal Housing Opportunity.
Homes for sale
Amarillo Homes
Amarillo homes for sale
Real Estate Agent
Amarillo listings
Canyon listings
Follow us on Facebook
Follow us on Twitter
Follow us on http://www.homesofamarillo.net
Follow us on http://www.sweethomeamarillo.com
No comments:
Post a Comment