Rent Or Buy

Rent Or Buy

 Better Homeowners 

  Information to Improve Homeownership   

Rent or Buy?

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.


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 a Rent vs. Own to see how your numbers will compare to this example or call me to do it for you.  

As a Residential Finance Consultant, I have the training and experience to provide solutions to make homes more marketable and help structure favorable transactions.  Please forward this article to your friends or family who could benefit from it.

Kupke & Tackett, Realtors
Halo Group Realty, LLC.












Diane Tackett Headshot
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Phone: 214-336-7505
Dated: September 21st 2014
Views: 959
About Diane: "Helping families make the right move." Welcome! Feel free to search for properties on our si...

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825 Watters Creek Blvd. Suite 230
Allen, TX
469-437-4651
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