RENTING vs. BUYING...

Buying versus Renting




There are many advantages to buying a home versus renting one. View these advantages in the Buy vs. Rent Comparison Chart, or view a financial comparison of buying versus renting in the Buy vs. Rent Calculator.



Your income, savings, and monthly expenses play an important role in determining how large a mortgage you can afford. To figure out the amount you can afford, please click Affordability.















Savings: Buying





In many cases, the amount of money a renter spends on rent can be about the same as or less than the amount a homeowner spends on a mortgage. With the tax benefit for homeowners, the savings can be significant.



Buy vs. Rent Comparison

The chart below shows a cost comparison for a renter and a homeowner over a seven year period.







The renter starts out paying $800 per month with annual increases of 5%

The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000

After 6 years, the homeowner's payment is lower than the renter's monthly payment

With the tax savings of homeownership, the homeowner's payment is less than the rental payment after 3 years


CLICK BELOW TO SEE THE CHART PLEASE:

http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy.asp?subtitle=ypth

IS THE TAX FREE CREDIT BOOSTING OUR ECONOMY?

The TAX FREE CREDIT is absolutely boosting our economy although I feel another 40% of the buyers who are qualified are still gun shy about purchasing. Some of them need to start the credit correction process now to actually be qualified to purchase before the deadline April 30th. Some of them do not know that they don't have to close until just before the June 30th deadline as long as contracts are executed and finalized by April 30th. This permits apartment renters nearly 5 to 6 months to stay in their leases and still be able to claim the $8,000 Tax Free Credit. So far, many are one the band wagon to gaining instant equity, the lowest interest rates in over 30 years, the most seller concessions ever, a huge inventory of homes and more! It is wise to act asap as the law is changing April 10th and will be increasing MIP from 1.75% to 2.25% as well as seller concessions will be reduced from 6% of the purchase price to only 3% causing buyers to have to come to the table with the other half. Lock in your contract now to avoid these seller friendly changes if you are a serious buyer who wants to capitalize on the market and increase your own personal net worth and/or investor portfolio. Create investment groups, team up and call me. Joint projects reduce the risk and still permit everyone to have personal and professional growth. Call me at 678.755.6590 and I can answer any questions you have regarding the aforementioned information. So far, the following statistics show that Obama and his administration have this aspect of the economy on right. He is a genius because:
The median sales price for home purchases is $178,300 and higher end homes were put on the market and sold to individuals and investors. So far, this year has been explosive! I anticipate the sales picking up to an unprecendented high as soon as renters realize the thousands of dollars they are waisting when they can at least move into a Lease/Purchase situation and start saving from day one. Email Sonya at Re/Max Around Atlanta Partners to find out how to move into your dream home and start saving immediately, regardless of your credit... sonyajones@remax.net.

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