Register Real Estate Advisors

I liked this article below about renters paying more money a year on housing than homeowners.  I encourage everyone I know to buy a house instead of renting.  Why pay someone else’s taxes, insurance, and mortgage?  I even have a rent vs. buy calculator.  Call me today and I can tell you how much money you could be saving by buying a home instead of renting.  Call me today at 281.288.3500 and we can discuss your options for purchasing a home.

Posted By susanne On October 25, 2011 @ 3:59 pm In Consumer News and Advice,Home Owner News,Real Estate News,Real Estate Trends,Today’s Marketplace

According to the National Association of REALTORS®, first-time homebuyers (FTHBs) accounted for half of all homebuyers in the United States last year.  Builders are taking note of those stats!  As a result, many builders in the Houston area are adopting marketing practices targeted at the FTHB market.  They are also making design changes to FTHB preferences.

Did you know that for as little as $650 a month you could own a townhome instead of renting?  Some townhomes rent for $900!  Compare the savings of renting vs. owning a townhome or house.  There’s also a lot of savings on energy bills in newer homes vs. apartments.  Most homes being built for today’s consumers are considered “Green” homes that have energy-saving features.

Many people rent because they do not want to maintain a home.  Did you know that if you buy a condominium you do not have to maintain the grounds?  There is little to no maintenance with a condo purchase.

Consider all of your options when renting, because there may be an alternative that could turn in to a nice investment in the future.

Did you know that in 2010 77% percent of the homes purchased were single family detached homes? That’s what most Americans live in. If you own a townhouse or rowhouse you are one of only 8% of those types of homeowners. Nine percent of homes purchased in 2010 were condos. That leaves 6% that were “other.” These are interesting numbers. If you are still out there renting…ask yourself this question…

Why am I paying someone else’s mortgage every month? If you don’t like the answer you give yourself…call RREA and we can help you become a home owner. 281.288.3500

This information was obtained from Brian Buffini’s Real Estate Report for 2010 and is called Industry Facts.

I offer a rent vs. buy calculator on my website so people can see the money they could save if they purchase instead of renting. Below is a video that might help you with your decision to rent or buy. You can also call my team to discuss your options. Our agents are trained to help people with these types of difficult housing decisions.

When it comes to a home, you have two options: buy or rent. What is right for one person may not be right for another, which is why it’s important to know which is the best option for your individual situation.

Why People Rent

There are a number of reasons why someone may either choose or be forced to rent, including sporadic or unpredictable income, a high debt-to-income ratio, a bankruptcy or foreclosure within the last six months, unpaid collection accounts or judgments, frequent relocating for employment or the inability to save enough money for a required down payment on the purchase of a home.

Maintenance Matters

As a homeowner, you will be responsible for any maintenance or repair issues that arise. This is a big consideration when choosing whether to rent or buy. When you rent, the property owner is responsible for repairs and it may not always be obvious that these issues can be very costly.

How To Know When It’s Time To Buy

If you have steady income with a good employment history, can provide a down payment of at least 5-10 percent of the purchase price and are current with all debts, it may be time to consider buying a home instead of renting. In some cases, the cost of rent may even exceed that of a typical mortgage payment.

When deciding to buy, job stability is a big factor. If your job does not require frequent relocation and you plan to live in the home for at least 5-10 years, you may want to consider making the purchase. If you need to relocate after that, you may have enough equity from the sale to use as a down payment on another home.

Home Buyer’s Checklist

If you can answer yes to the following questions, you may be ready for home ownership. Your REALTOR® can help you to find the perfect home based on your individual needs.

Have you been steadily employed for at least one year, but preferably two years?

Do you plan to live in the home long enough to build equity?

Can you provide a down payment and still have enough money left to pay for closing costs, utilities and home furnishings?

Are you current on all debts, including auto loans, credit cards, etc.?

In addition to any current debts that you may have, can you afford a monthly mortgage payment which will likely include property taxes and insurance?

Do you have the time to devote to shopping for a home and comparing interest rates from various lenders?

Have you checked your credit reports for inaccuracies and disputed anything that needs correction with each of the three major credit reporting agencies?

The decision to buy or rent is a very personal one that can only be determined after a careful evaluation of your situation. A REALTOR® can show you the perfect home and a lender can tell you whether or not you can afford it, but it’s up to you to make the choice as to whether or not you are ready to make the move.

If you are a renter, you might be wondering how much mortgage you can afford.  Please use the Rent vs. Buy calculator on my website to figure out what you can afford.  I thought the following information was interesting, so I am sharing it with you.  It is reprinted with permission from the National Association of REALTORS and reprinted from REALTOR Magazine Online.

The following calculation assumes a 28% income tax bracket.  If your bracket is higher, your savings will be, too. 

Rent: _____________

Multiplier:  X 1.32

Mortgage Payment:  __________________

Because of tax deductions, you can make a mortgage payment – including taxes and insurance – that is approximately 1/3 larger than your current rent payment and end up wtih the same amount of income. 

Not only does owning a home give you a haven for yourself and your family, it makes great financial sense, too.  Right now, if you are a first time home buyer you can take advantage of the $8,000 tax credit available.  You must hurry, because it ends in April!  Call me today so we can get started.

As well as helping people buy and sell properties, I also help families lease homes.  I often refer them to my rent vs. buy calculator so they can see that owning a home does not cost much more than renting a home.  Why pay someone else’s mortgage for them?  There are many reasons to own your own home. 

First of all, when you own your own home you can take advantage of tax breaks.  You can deduct the interest you pay on your mortgage and property taxes.  Houses usually appreciate in value over time, so you gain equity.  Now I know right now houses in most areas are not appreciating, but in general, usually houses do appreciate over time.  When you pay rent, you lose that money.  But when you purchase a home, part of that monthly payment goes towards your equity in the home.  Through the years, you will gain equity and pay down the mortgage.  Usually, after 30 years people can own their homes free and clear.  Building equity is like a savings plan for most homeowners.  If they need money, they can take out a home equity loan and use the equity to make purchases when needed.  Also, your mortgage payments do not increase over the years unless you have an adjustable rate mortgage.  Many landlords do increase rent yearly.  When you own a home you have the freedom to make whatever decorating changes you want. 

There are many reasons to purchase a home instead of renting or leasing a house.  Right now, first time home buyers can take advantage of the $8,000 tax credit.  That is free money from the government that won’t be around much longer – it ends this April.  If you would like to explore your options in home ownership, please call me today so we can get started.  I have helped many renters enjoy the opportunity of home ownership and that is what makes my job as a REALTOR so exciting!