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Cell:678-907-7034
Ph:678-534-2718
Fax:678-935-0963
skype:homeexpogallery homeexpogallery
west.adriana@gmail.com
Keller Williams First Atlanta
200 Glenridge Point Pkwy
Suite 100
Atlanta, GA 30342
9866
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Adriana West (Keller Williams First Atlanta): Real Estate Agent in Roswell, GA
Minority Business Enterprise Certified

Have you ever wondered how much money you will save if you buy a home over renting an apartment? When you think about buying a home, many questions will come to mind. Do I really need to buy a home? Is my income going to grow? Have I got enough money saved? These are just a few questions that you might wonder asking yourself when buying a home.

There are two reasons why NOW is the best time to go “permanent.”  First, look at the standard calculation on the overall cost of buying versus renting (shown below); second look at the current market and compare it to the “typical” market.  Let’s look first at the numbers:

Comparison: An apartment renting for $2,100 today or a house listed at $350,000?

The rent calculations are simple: Today’s rent is $2,100 and the typical rental increase per year is 3.5%.

The Home Ownership numbers are much more complicated, but worth exploring.

Purchase Price

$350,000

Down Payment (20%)

$70,000

Amount Financed

$280,000

Interest Rate

4.125%

Term (Years)

30

Monthly Payment (Mortgage + escrow for taxes and insurance)

18212

Inflation Rate

2%

Maintenance Per Year

8000

Tax Rate

28%

House Appreciation per year

2.5

Monthly cost to own

$2220.88

Note: In the initial year, you are paying $120 per month more to own a house than to rent.  If you live there for only one year and move out (rent) or sell (own), the loss is a staggering $24,620.  But your rent goes up every year.  Your mortgage payment does not, but taxes, insurance, and maintenance will.  Renting becomes cheaper on a monthly cash flow basis in year 4 (typically).  The appreciation of the house outweighs the costs of selling the house during the 5th year (typically).  All this becomes visible on the graph below:

GraphWe at Home Expo Gallery would be happy to walk you through all these numbers, and even give you a spreadsheet to explore the options for yourself.  In addition, we can help you set yourself up for success by getting the best deal you can on the home you purchase.  We are expert negotiators who know the market inside and out and can back up our numbers with hard data that convinces sellers to adjust their pricing.

Now, why is NOW the best time?  The housing market is climbing out of its trough.  We have seen the lowest prices we will see for a decade or two.  In fact, prices have climbed dramatically in the past few months in this strong Seller’s Market.  The advantage for the Seller, however, is now declining as the banks begin to release more homes into the market, yielding stable but not declining prices.  The government has indicated that interest rates will not be going down for the foreseeable future and will begin to rise shortly.  The pricing and interest pictures are as good as they are going to get.  This, combined with our market and negotiation expertise means you should buy now!  Let us help you get started.  Call us today!