Interesting numbers on Rent vs. Own

[blueoval01]

Got to talking to myself again this morning. :rolleyes:
Last summer, several of us refinanced our homes when the interest rates were really low. And if you have owned a home, no doubt you have looked at the numbers comparing interest rates, mortgage terms and the different kinds of mortgages out there.
I realize that quite a few of the people here rent either apartment, condo or whatever. So it hit me to look at the numbers for renting verses owning. Pretty interesting indeed.:eek:

Rent verses own (http://www.mgchristopher.com/Rent_vs_own/Calc_BuyRent.html)

Obviously these numbers will never match any given persons situation exactly but none the less, they tell a true story!

[travis5000_99]

I agree, Its a great time to buy a home....
I just baught a home in Wylie on Tues.... I will close on 6/15 or so.. I am still in school working a deadend job (under 28k) & we just baught a home for 130,000... & my payments are going to be LESS than an apartment!!
Rates are a little higher than last year but, still a great deal.. :d

[blueoval01]

I agree, Its a great time to buy a home....
I just baught a home in Wylie on Tues.... I will close on 6/15 or so.. I am still in school working a deadend job (under 28k) & we just baught a home for 130,000... & my payments are going to be LESS than an apartment!!
Rates are a little higher than last year but, still a great deal.. :d That's great, Travis!! Congratulations! :banana:
Those numbers I did were based on a dead simple 30yr. amortized loan. There are a boat load of other options out that the finance companies are offering.

Even though there are no guarantees on the Rate of ROI, there's a saying that has always stuck in my head.
"Don't wait to buy a Home, buy a Home and wait". :cool:

[travis5000_99]

Thanks man, were excited!!

It'll be nice to park my L in a nice and cosy garage... We are doing an interest only loan for, it saves us a boat load, thats just us though... :-D

[dboat]

WEllllll, let me see.... the standard deduction for a married couple with no kids is 9500. So your deduction on tax savings doesnt hold up until you get a mortgage big enough to have that level of deductions, and then the benefit is really only the amount over 9500. On top of that, the higher you get in income, the more they start to cap how much you can deduct after that.. Also, you dont have the repair costs involved in a rental that you do in a home that you buy. So you actually might be better off renting, taking the difference and putting it in stocks and bonds and such. The appreciation of a home is never a given but traditionally over time has gone up in most areas in Dallas, but then again there have been times when it has gone down too. It wasnt that long ago that the tech sector took a hit and you had a tough time selling a home in far North Dallas, since everyone seemed to be working for a telecomm company back then.
At the end of the day, I buy a home because I want to live in my home, hopefully build equity and get it paid off so that I own it and can call it my own.
But the old numbers just dont roll the way they used to..

just my .02
Dana

[blueoval01]

.......
But the old numbers just dont roll the way they used to..
just my .02
Dana And my .02 worth was an example.
Sure if you pay high for a house and the market drops ...... sure, the same thing happens to your stocks.
It's all in the timing of the cycle with homes.
Was I telling everyone to run out and buy a house? No! I was offering a valid example between Renting and Buying. Do I think a home is a good investment? Yes.... another .02 worth.

You sold your house last year. If you had it on the market today, could you get more for it? I'll bet so.

Market values around here have increased just about 2% since December '03. I own 3 houses that I watch the numbers on. So that increase isn't some :bsI just pulled from my back pocket.

Disclaimer: I am NOT a financial adviser. The numbers posted for Rent verses Buying are only examples.

[blueoval01]

OK, you got me wound up now, Dana.
Personal experience:
If I had taken the money I put into SUN stock in 2002 and put into another house, I'd be about $7000 ahead of the game RIGHT NOW. If I was selling that house RIGHT NOW.
"THAT HOUSE" I could have bought will fetch about $7000 more TODAY than I could have bought it for in 2002.
So, again, I'm not saying stock is a bad investment. But, the timing could have netted me over 50% ROI in 2 years. And to boot had the tax advantages since. Stocks don't offer any tax advantages that I know of. And if they do, please let me know so I can deduct my loses. :hammer:

Disclaimer: I am NOT a financial adviser.

[03'svtlight]

And my .02 worth was an example.
Sure if you pay high for a house and the market drops ...... sure, the same thing happens to your stocks.
It's all in the timing of the cycle with homes.
Was I telling everyone to run out and buy a house? No! I was offering a valid example between Renting and Buying. Do I think a home is a good investment? Yes.... another .02 worth.

You sold your house last year. If you had it on the market today, could you get more for it? I'll bet so.

Market values around here have increased just about 2% since December '03. I own 3 houses that I watch the numbers on. So that increase isn't some :bsI just pulled from my back pocket.

Disclaimer: I am NOT a financial adviser. The numbers posted for Rent verses Buying are only examples.
:rll: :rll: :rll:

[REXRENEGADE]

Wifey and I are working on getting a new house right now. We found a new development in Euless we like, and are going through the qualification process. I will keep everyone informed on our homebuying experience.

:beer:

[Aggie Mom]

My only comment is don't buy an older "historic" house or all those great savings are spent on upkeep. I speak from personal experience on this one. I'd ditch the house right now if it wasn't for the fact that the garage is 1500 square feet and the truck is soooo happy in it.

[blueoval01]

Hey Cathy,
I totally agree. There are tons of factors to consider and I'm not even gonna go there.
The intent was to simply look at:
I'm paying $xxx on rent, if I borrow $xxx for a house, how does the monthly payment (PITI) compare.
As an FYI, the numbers really made me think. But for most, it's pretty much useless data.

WHOA!! :eek: 1500 sqft garage!? Nice. From the size, I'm guessing it was a barn at one time.

[Crawford]

Interesting. So that is for a $90,000 loan... then I would need to put about $60,000 down in order to get a decent house in north Dallas. Comparing to a monthly rent of $900... I only pay $600/mo. Looks like I need a raise! :tu:

BRB, I think my drawing board is over here somewhere... :tongue:

[True Blue Aggie]

Sorry for the alternate thread....

The garage was once a two car carport (not enclosed). Then we added a LARGE two car enclosed to the garage, then we added an additional single car to house the race car trailer. And at one point in time, all of the stalls were full with cars, with two others on the outside. So we had a big garage....funny part is the house is only 1400sf, I think....so of course our priorities were set right..

[98Cobra]

I'd like to buy a house, but for one I would want the payment would be more than I spend in rent, and other costs would make it even higher - utilities, lawn, etc....just out of my price range right now....:(

[blueoval01]

...........funny part is the house is only 1400sf, I think....so of course our priorities were set right.. :rll: .. that's no joke! :cool:

[blueoval01]

.......just out of my price range right now....:( Garett, I understand.
My first house 24 years ago was a fixer-upper.
........ wanted payments based on 1 income (mine) even though my SO was working at the time.
It turned out to be a good decision.

[dboat]

Mark,
I hope you didnt think I was picking on you. I agree with you, because I am about to move into our new home. I am also not a believer in buying a new home, but I didnt have much of a choice on that one. Its almost always better to buy a slightly used home rather than a brand new one.. IMHO.

Back on topic, I just wanted to post an opposing view to help the apartment dwellers. I had this discussion recently with a neighbor and I was arguing the same side as you. But his arguement and the one I posted has merit to is due to the amount of the standard deduction anymore.

Besides, you never came to see my house when it was for sale... :rolleyes:

But I still like you anyway...

Dana

[blueoval01]

Mark,
I hope you didnt think I was picking on you. I agree with you, because I am about to move into our new home. I am also not a believer in buying a new home, but I didnt have much of a choice on that one. Its almost always better to buy a slightly used home rather than a brand new one.. IMHO. :) No worries, man. I kinda "Flew" off on you.
New homes? Yep, the builder can actually become your competition if your selling a few years down the road.


Back on topic, I just wanted to post an opposing view to help the apartment dwellers. I had this discussion recently with a neighbor and I was arguing the same side as you. But his arguement and the one I posted has merit to is due to the amount of the standard deduction anymore. Granted the standard deduction has been raised, but a renter still has nothing to show for the $$ money paid. So, it's a personal thang ....


Besides, you never came to see my house when it was for sale... :rolleyes: BawHaHaHaHa .... I did in fact see your home. Online, nice Ranch Style as I recall.


But I still like you anyway...
Dana Same here ... :D

[03LightningRocks]

Interesting. So that is for a $90,000 loan... then I would need to put about $60,000 down in order to get a decent house in north Dallas. Comparing to a monthly rent of $900... I only pay $600/mo. Looks like I need a raise! :tu:

BRB, I think my drawing board is over here somewhere... :tongue:

LOL.........it depends on what you call decent. 2600 square foot or better in a neighborhood that is relatively safe and you would need about 90K down...and it's getting steeper by the month.


On a side note...I bought in 1996 after renting for more than 20 years. I could kick myself for not doing it sooner. I refinanced the note on that house last July at a 4.25% interest rate for 15 years and my payment is less for owning than renting the same house in my neighborhood.

The tax benefits are the gravy:D .


Rocks:beer:

[03LightningRocks]

......
BawHaHaHaHa .... I did in fact see your home. Online, nice Ranch Style as I recall.

Same here ... :D

He had some kick ass furnaces in there too...knana . Was that in the add you saw?


Rocks:D

[dboat]

He had some kick ass furnaces in there too...knana . Was that in the add you saw?


Rocks:D

I have to admit, Rocks came in and did a complete interior redo on the furnaces and fixed the wooden floor of the attic they were on, the the guys fixed the drain pans, etc. His guys were great and it made the inspection go flawlessly. Rocks and his company :bows . He really deserves it. I dont owe anything to Rocks so this is not some paid advertisement, the man just knows his HVAC stuff and his staff is top notch at what they do. Customer service to the max. Those soft start fans are the shiznit too.

Thankfully, you should only have to do that once every 20 years or so.

And its all different up here, everything is in the basement. The big issue is not the a/c but the heating. I upgraded to a unit that has a 12 volt fan so that it spins down and then continues to run in a slow mode that continues to move the air slowly thru the house to keep all the floors at the same temp and you dont hear it run. The a/c is a 10.0 SEER, because you just dont use it that much, but the dehumidifier runs about 9 mos out of the year and then the humidifier runs about 3 months out of the year. :confused:

Dana