To Buy or Not to Buy...That is the Question

2008-12-15T15:08:00.010-06:00

The answer WIIFM…

"What’s In It For Me?”

Ask yourself, “How do I benefit by buying a home? What things should I take into consideration with my personal circumstances to buy a home? Or should I continue renting?

Review the following scenario:

IF:
You rent for $1000.00 per month

BUT YOU:
Can buy a home for $150,000
And you pay 20% down ($30,000)
Your *loan amount would be $120,000
*5.75 % for 30 year fixed rate

P&I $700.29 per month

(P&I stands for principal and interest of the loan amount. This is ONLY the principal and interest payment per month. Remember to add monthly taxes and insurance on top of the P&I to get a true picture of your total monthly payment.)

Hmmm…so now you say, “Okay, my monthly payment obligation is pretty much the same, where is the "WIIFM" in all of this?

Well let’s say that the area of the home that you are considering to buy has a 4% per year increase in property values. After 2 years, assuming that the property values maintain the same increase per year, this would be the situation:

Rent payments for 2 years would total $24,000 (That is….$24,000 out of your pocket and no property.)

Vs.

Buying a home and making payments after 2 years you will have accomplished the following:

1. Paid down the loan approximately $3,320.00

2. Increased the equity position in the home by approximately $12,240.00

3. Received Tax BENEFITS!!! Check with your accountant that prepares your taxes. He will take into consideration your income bracket to calculate your tax benefits on paying your taxes monthly on your house payment. HUGE Perk!

WIIFM???? In this scenario, BUY!

Savvy Buyer Rule: Always check out the market values and rate of increase per year in the area that you are considering to buy a home. Also, take into consideration the amount of years that you project that you will be living in the home. These are important key factors in considering the question “to buy or not to buy.”

Greetings to Savvy Buyers

2008-12-04T15:39:00.009-06:00

Who doesn't want to have the advantage when you are going to invest thousands of $$$ into a real estate purchase? Savvy buyers do not believe that "Knowledge is POWER". The Savvy Buyer understands that "Knowledge IS POWER ONLY when you USE IT!"

My hope is that you will look forward to coming back to "Hot Tips for Home Buyers" to learn and USE what you learn to be a Savvy Buyer.

Hot Tips for Home Buyers

To Buy or Not to Buy...That is the Question

Greetings to Savvy Buyers