Buying a first home can be intimidating. Here are some facts that might help you take that 1st step towards Homeownership: Over the last 10 years, the cost of renting in the U.S. has increased an average of 3% per year. That means that an apartment or home renting for $1000 per month will cost more than $1,300 a month in 10 years. If you rent the same home for 10 years, the total amount you would pay for rent will be $137,567.
TOTAL ANNAUL COSTS*
Homeowner Renter
Annual Mortgage/Rent $15,168 $12,000
Real Estate Taxes $2,760 $ 0
Mortgage interest (Tax Deduct) - $3,864 $ 0
Tax deduct for property tax - $816 $ 0
Mortgage principal accumulation - $2,232 $ 0
Appreciation - $9,450 $ 0
TOTAL ANNUAL COST $1,566 $12,000
Now that you see the figures, which makes more sense? If you are interested in looking for a home, give me a call at (773) 844-6334. If you don't know how much of a mortgage you can qualify for, give me a call and you can find out if it makes more sense to own a home instead of paying someone else's mortgage for them
* - All information supplied by National Association of Realtors - "Why rent when you can buy" guide