Rent Vs. Own – What’s Best for YOU?

    Rent Vs Own 2

    The dream of homeownership runs deep in our culture, but after the Great Recession, many people are afraid of finding out it will be a nightmare.

    One of the responsibilities I take very seriously as a Realtor is always giving my buyers the most realistic advice possible during their house hunt. I want them to be happy and financially secure at the end of their hunt – regardless of the bottom line commission figure for me. A big part of how I help is by referring my buyers to loan officers who I know will also keep my clients’ best interests in mind.
    My friend Steve Testa of Peoples Home Loans is one of the best in the mortgage business and I asked him to help me explain the math behind the decision to Rent Vs. Own. Below you’ll find an estimated breakdown of the numbers for 3 different price points of homeownership compared to comparable rental homes and their costs.

    If you’re renting at $1,200 Vs. buying at $175,000

    1200 Rent Vs Own square

     

    If you’re renting at $1,500 Vs. buying at $220,000
    1500 Rent Vs Own square

    If you’re renting at $2,000 Vs. buying at $175,000

    2000 Rent Vs Own square

    As you can see from the examples above, owning a home can be an amazingly affordable option when compared to NJ’s high local rents and those regular rent increases that are inevitable in a strong rental market. In a ten year period, you can keep the costs of your homeownership relatively level while building an enormous amount of equity in your home. Imagine using those monthly payments to invest in your own future rather than your landlord’s! A house might not make you the same money over time that stocks would, but it is a solid place to park money that you have to spend to keep a roof over your head regardless of whether you’re an owner or a renter.

    There are factors that can make renting favorable. If you’re not staying put long enough to build equity or value in your home, the closing costs involved in buying or selling your home might not be worth it at all. Additionally, renting in a declining real estate market can be a wise choice. In NJ we’re fortunate to be growing and thriving, but if that weren’t the case I’d certainly advise against buying before the market stabilized.

    If you’d like to talk about whether you’re ready to buy, please give me a call! I’m happy to offer advice on how to get started on your house hunt! I’ve helped so many first time buyers realize their dream of homeownership over the years, and it never fails to make my day!

    Jacqueline Scura is a Top Selling Agent in NJ and has over 28 years of experience as a Realtor. Her unparalleled local Real Estate expertise and involvement makes her a resource for Morris County Real Estate Advice & New, Town Events and Information and Household Tips & Tricks. She specializes in Parsippany Real EstateBoonton Real EstateBoonton Township Real EstateDenville Real EstateMontville Real EstateRockaway Township Real Estate, Caldwell Real Estate and Mountain Lakes Real Estate. Narrow down your search for Rentals or Condos and Townhomes on my site!

    Contact her with any questions at (973) 335-4600 or visit her website at www.JackieScura.com“Like” our Facebook Page at www.JackieScuraSays.com

    Jacqueline Scura  |  RE/MAX First Choice Realtors  |  1160 Route 46 West, Parsippany, NJ

    Trackback from your site.

    Leave a Reply