I don’t know how long it will last, but it feels like we are in the perfect storm right now. With inventory levels being very low, and interest rates being at all time lows, the seller’s of equity deals are back in the driver’s seat.
What do you think?
For more information give me a call:
- John Barnes DRE# 01382203
iNet Realty 2450 Dupont Dr. Irvine, CA 92612
Phone (949) 923-9906
Why are you renting?
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There are many different answers to this questions, but if your answers are:
- “I’ve never thought of that,”
- “I don’t think I can afford it,” or
-”I don’t have the down payment”
Start thinking about it and check out what you can do!
Below is a great table from the Ginnie Mae government website that shows the difference between Buying vs Renting
The renter starts out paying $800 per month with annual increases of 5%
The homeowner purchases a home for $110,000 and pays a monthly mortgage of $1,000
After 6 years, the homeowner’s payment is lower than the renter’s monthly payment
With the tax savings of homeownership, the homeowner’s payment is less than the rental payment after3 years
Years Rent Payment Mortgage Payment Monthly Diff. After Tax Savings Yearly Diff.After Tax Savings
1 800 1000 -200 -50 -2400 -600
2 840 1000 -160 -10 -1920 -120
3 882 1000 -118 +32 -1416 +384
4 926 1000 -74 +76 -888 +912
5 972 1000 -28 +122 -336 +1464
6 1021 1000 +21 +171 +252 +2052
7 1072 1000 +72 +222 +864 +2664
8-30 Savings increase every year
Now you’ve seen this table, and you may be saying “But I don’t have the downpayment.” If that’s your concern, you’ll be happy to know that with 3.5% down your good to go!
For more information give me a call:
John Barnes DRE# 01382203
2450 Dupont Dr.
Irvine, CA 92612
Phone (949) 923-9906
