Home Archive for category "Real Estate"

Buy vs Rent – What’s better? $1,500 rental vs $100,000 purchase price

Published on Sep 11, 2012 by

Let’s compare renting versus buying.

Let’s look at the specifics.  If you rent, let’s assume you’re paying $1,500 per month, that equals $90,000 in five years ($1500 x 12 months x 5 years)

If you bought a home, let’s assume you buy a $100,000 home and put $5,000 down payment and take out a loan for $95,000 at 5% over 30 years. We’re also adding $4,800 per year for property taxes and another $4,800 per year for home repairs and $600 per year for property insurance.

Realistically, your numbers will vary, but looking at this scenario, you would be over $16,100 AHEAD if you purchase a home now than if you rented over the next five years AND your monthly payment should be under $1,000 per month for principal, interest, taxes and insurance.

ONLY you can decide what’s best for you, but buying a house in 5 years will allow you to get a $16,100 car for free, or trip or boat or ??? (if you plan correctly and save the money you’re not spending on the rental.)

This data is for informational purposes only and accuracy of the figures hereinafter set forth is not guaranteed. The actual costs with respect to each transaction will vary depending upon the circumstances.

 

 
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Are Seller’s taking power in negotiation?

Published on Aug 30, 2012 by

According to a study by Redfin and posted in Inman News, more buyers are feeling the tides are changing and their power position is being jeopardized because of the changing market conditions.  7 out of 10 buyers surveyed said they encountered multiple offers on properties they were trying to purchase and 31% said they would back off when faced with multiple-offer situations, up from 28% during the 2nd quarter of 2012.

Still, 46% of buyers feel now is a good time to buy, which is down from 56% during the first quarter.  32% of sellers now think is a good time to sell,up from 13% during the first quarter.  All this points to a change in the power position of buyers-vs-sellers in the real estate market.

Regarding home prices, 61% of those surveyed believe prices will increase, up from 32% during the 1st quarter.  All this points to a slow but strengthening real estate market.

 
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