Where does your pay check go every week?

student loan debt, credit card, mortage payment, earned money pay check

Do you have student debt, credit card bills, and rent to pay every month?  How you can make your hard earned money work for you?

Why not make that weekly pay check go farther buy investing in a home?  Yes, your money can help you make more money and it’s time to learn how by know that buying a home today is still 35% cheaper than renting! 

With today’s low mortgage rates and home prices you would be surprised to see just how much of a home you can own compared to what you are paying in rent.  Both mortgage rates and home prices are rising from very low levels and are still below their long-term historical norms and renting has risen.  Nationally, buying is 35% cheaper than renting if you stay for 7 years in your new home, 27% for 5 years and 8% for three years.

 So to help you understand how much of a savings you can make by buying a home rather than renting, let’s do the math.

  1. Calculate rent and the sale price for an identical set of properties.
  2. Calculate the initial total monthly costs of owning and renting, including maintenance, insurance, and taxes.
  3. Calculate the future total monthly costs of owning and renting, taking into account price and rent appreciation as well as inflation.
  4. Factor in one-time costs and proceeds, like closing costs, down payment, sales proceeds, and security deposits.
  5. Calculate the net present value to account for opportunity cost of money.
  6. Remember there is also a tax savings deduction when you take out a mortgage and pay property taxes.  (please check with your accountant for what that savings would be)

For more information on purchasing or selling your home please visit my website at www.debyoungrealtor.com.

Tags: credit cards, first home buyer, home mortage payment earned money student debt, renting