Market Conditions in 88001>Question Details

Maggie, Home Owner in 88001

rent v buy formula

Asked by Maggie, 88001 Mon Jun 20, 2011

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Answers

8
Hi Maggie,

In my opinion buying would be the better answer since you will get all the benefits that have been stated
prior to my answer, plus you get to deduct the mortgage interest on your Federal Income Tax and you wil
be earning equity for your future.

Nellie Bunch
Associate Broker, Las Cruces, NM
website: nelliebunch.com
575-644-2715
0 votes Thank Flag Link Mon Jun 20, 2011
As simple formula is to divide the sell price by how much the place would rent for monthly. If the value is less than 200 then it makes sense to buy if it is over 200 then it might be better to rent. See my blog in the link below for more information.

Ben Altman
http://www.877homes.com
0 votes Thank Flag Link Mon Jun 20, 2011
Here is another rent vs. buy calculator site I like: http://www.nytimes.com/interactive/business/buy-rent-calcula…

But keep in mind there are many factors to consider and each person's situation varies in a way that you have to decide what is best for you.
0 votes Thank Flag Link Mon Jun 20, 2011
Maggie,
Like Bill said there is no magic formula.
Remember your home is an investment, Much the same as stocks, your home will appreciate and depreciate in value.
Before suggesting to keep the home or rent I would need more information from you.
Currently rental prices are at a premium
In our market because of supply and demand.
If you would more information on your question, Please feel free to contact me at sherrell@sherrellgrimes.com or 575-635-3665.
Sherrell
0 votes Thank Flag Link Mon Jun 20, 2011
HI Maggie, Since it's been said below the formula's and websites to visit we cannot say more on this question as it's been said. However we can add by saying the following.

When you rent there is no return on your money, your just paying for someone elses mortgage.
If you should fall ill or lose your job, you will be out of your rental in as little as 60days.
You cannot decide to sell your rental and make money
You cannot fight to stay in your rental because you lack the money and want to renegoiate the interest rate
You cannot get a tax credit on your rental.
You cannot change or improve the living space unless you get permission from the landlord.
You cannot change the structure of the rental or put up a fence or take one down.

If you buy a home you can do all of the above. You can earn equity in a home, You can make repairs and improvements to increase the value of your home. You can paint, put up a fence, get a dog, add a garage if you want to, and the list goes on.


All the best
Dave & Lisa
Web Reference: http://www.urhomerealty.net
0 votes Thank Flag Link Mon Jun 20, 2011
Hello Maggie,

Here are a few handy calculators to help you decide if buying a home is more beneficial than renting. Hope this helps!

http://realestate.yahoo.com/calculators/rent_vs_own.html

http://www.ginniemae.gov/rent_vs_buy/rent_vs_buy_calc.asp?su…

Joseph
0 votes Thank Flag Link Mon Jun 20, 2011
Hi Maggie,

This a questions asked many times in todays market. I have found that Ginne Mac has a good calculator that works.

http://1.usa.gov/jI90u

That link will take you to the site, enter in the data and see your results.

There are other factors you would look at too, but they are numerous to discuss online. If you want, contact me, and ill be happy to discuss them with you. But def try out the site :-)

Good Luck
Adam DiFrancesco, e-Pro,GREEN,SFR
Lic. Associate Broker NY
Lic. Sales Person NJ
Coldwell Banker Residential Brokerage
0 votes Thank Flag Link Mon Jun 20, 2011
Maggie,

There is no such creature as a "rent v buy formula." But if you can buy a home and pay the annual taxes for less than your annual rent, wouldn't it make sense that buying would be a viable consideration.

But then how would you factor in ownership, quality of life, additional space, having a yard, investment potential, etc.

We recommend reviewing your monthly budget, accounting for all income and expenses. By being realistic and really crunching the numbers, you should come to a clear understanding of what it's going to cost you to live and pay for a home.

Once this is done, pay a visit to several loan agents to see what amount, program, and rates you qualify for. Basing your decision on real numbers that apply to you will help you to see the way....

Good luck,

Bill
0 votes Thank Flag Link Mon Jun 20, 2011
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