Like the guy in the video says, the two do not really compare at all. The one advantage of renting is being generally free of most maintenance responsibilities. But by renting, you lose the chance to build equity take advantage of tax benefits and protect yourself against rent increases.Also, you may be at the mercy of the landlord for housing. Owning a home has many benefits. When you make a mortgage payment, you are building equity increasing YOUR net worth. Owning a home also qualifies you for tax breaks that assist you in dealing with your new financial responsibilities like insurance, real estate taxes, and upkeep which can be substantial. But given the freedom, stability, and security of owning your own home they are worth it.
RENT
Calculating Your Asking Price
Cost & Price. Do You Know The Difference?
As a seller, you will be most concerned about ‘short term price’ – where home values are headed over the next six months. As a buyer, you must be concerned not about price but instead about the ‘long term cost’ of the home.
The Mortgage Bankers Association (MBA), the National Association of Realtors, Fannie Mae and Freddie Mac all projected that mortgage interest rates will increase by about three-quarters of a percentage point over the next twelve months.
According to CoreLogic’s most recent Home Price Index Report, home prices will appreciate by 5.2% over the next 12 months.
What Does This Mean as a Buyer?
Here is a simple demonstration of what impact an interest rate increase would have on the mortgage payment of a home selling for approximately $250,000 today if home prices appreciate by the 5.2% predicted by CoreLogic over the next twelve months:
Call 786.554.8063 or email us George@GeorgeAssal.com, WE are here to facilitate and help you during the process of buying, selling, or renting any real estate needs, which will result in reaching your financial goals quickly and with ease, visit our page www.GeorgeAssal.com
The Impact of Higher Interest Rates
Last week, an article in the Washington Post discussed a new ‘threat’ homebuyers will soon be facing: higher mortgage rates. The article revealed:
“The Mortgage Bankers Association expects that rates on 30-year loans could reach 4.8 percent by the end of next year, topping 5 percent in 2017. Rates haven’t been that high since the recession.”
How can this impact the housing market?
The article reported that recent analysis from Realtor.com found that –
“…as many as 7% of people who applied for a mortgage during the first half of the year would have had trouble qualifying if rates rose by half a percentage point.”
This doesn’t necessarily mean that those buyers negatively impacted by a rate increase would not purchase a home. However, it would mean that they would either need to come up with substantially more cash for a down payment or settle for a lesser priced home.
Below is a table showing how a jump in mortgage interest rates would impact the purchasing power of a prospective buyer on a $300,000 home.
In Conclusion
If you are considering a home purchase (either as a first time buyer or move-up buyer), purchasing sooner rather than later may make more sense from a pure financial outlook.
Tired of being a tenant? thinking of selling your home?, looking to upgrade? 1st time buyer(s)? buying your dream home? Call us 786.554.8063 or email us George@GeorgeAssal.com, WE are here to facilitate and help you during the process of buying, selling, or renting any real estate needs, which will result in reaching your financial goals quickly and with ease, visit our page www.GeorgeAssal.com
Is now a good time to Rent? Definitely NOT!
People often ask us whether or not now is a good time to buy a home. No one ever asks when a good time to rent is. However, we want to make certain that everyone understands that today is NOT a good time to rent.
The Census Bureau just released their second quarter median rent numbers.
Here is a graph showing rent increases from 1988 until today:
At the same time, a report by Axiometrics revealed:
“The national apartment market’s annual effective rent growth rate of 5.1% in June 2015 represented a 47-month high, and continued a streak of 5.0%-plus rent growth that is now the longest in at least six years, according to apartment market research. The effective rent growth in June 2014 was 3.7%, putting June 2015’s exceptional performance into perspective.
This is the highest rate since the 5.3% of July 2011. The metric has reached at least 5.0% for five straight months, the longest such streak since Axiometrics started monthly reporting of annual apartment data in April 2009.”
Where will rents be headed in the future?
Stephanie McCleskey, Axiometrics vice president of research, commented on the above report in an article by Real Estate Economy Watch:
“Rent growth is just shy of the post-recession peak, and the June metrics reflect the continued strength of the apartment market. The demand for apartments is still strong, despite the record number of new units being delivered this year. Tight occupancy is why landlords can push rents higher.”
Bottom Line
Tired of paying rent? Are you ready, willing and able to start a new life? if you answered YES, now may make sense, it might not be a good time to rent however is a good time to buy, We (the ASSAL team) are not for rent nor for sale but YES to help you reach your goal faster, easier and with a smile on your face! Call us today at 786.554.8063 or send us an email at george@georgeassal.com– you can count on our help every step of the way.
Onyx on the Bay – For Rent
Onyx on the Bay is the name given to the tallest building in the Onyx on the Bay is a luxury building/complex in Miami, Florida, United States. Located in northern Midtown Miami, the tower was completed in 2007.
It is 27 floors and 308 feet (94 m) tall with 118 units, there are six different floor plans raging in size from 886 to 3,386 SQF, there are also five penthouses. The building is located on Northeast 25th Street between Biscayne Avenue and the oceanfront, also known as the Art District; it is a development of BAP/GGM development.
The unit that I’m presenting you today, is a sensational 2 bedrooms and 2.5 bathrooms, completely renovated with, marble floors throughout including the balconies, custom made closets, Italian kitchen and granite counter tops.
Living in Onyx on the Bay is like living in a heaven with his beautiful exterior and interior design and their VIP service with 24hrs concierge. Onyx on the Bay is minutes away from Downtown Miami, Brickell, South Beach, Midtown, Shops and Restaurant.
Interested in Selling, Buying, Renting in Brickell, Downtown, Coconut Grove, Coral Gables and surrounding areas? Call me 786.554.8063 or email me George@GeorgeAssal.com, I can help, because working with someone who knows the numbers and area is crucial.
Just Listed – FOR RENT – 1901 Brickell – $1,850.00
Waterfront 1BR/1.5BA with Bay & City views, balcony, washer/dryer, covered parking space, walk-in closet and plenty of storage space. Has tile floors throughout, except to the den, which has new carpet. Excellent location, near to Mary Brickell Village, entertainment and public transportation. Rent includes water/sewer and all amenities: pool, great gym, sauna, tennis courts, basketball, indoor racquetball, billiards, cafe/convenience store, marina and much more. Can be rented furnished or unfurnished.
I am a Brickell real estate specialist. If you would like to schedule a buyer or seller meeting with me, please feel free to call me directly at 786.554.8063 or via email George@GeorgeAssal.com
NEW LISTING FOR RENT – DORAL – 4/2.5
NEW LISTING FOR RENT – DORAL – 4/2.5
IMMACULATE BEAUTIFUL 4/2.5+DEN COACH HOME, IN A GATED COMMUNITY (BARBADOS) KITCHEN WITH GRANITE COUNTER TOP, STAINLESS STEEL. TILE/LAMINATED WOOD FLOORING, PAVER PATIO, ACCORDION SHUTTERS. PATIO FACING KIDS PLAYGROUND, CLOSE TO A+ SCHOOLS, MINUTES AWAY FROM TURNPIKE, FAMOUSE DORAL GOLF COURSE AND BUSINESS DISTRICT IN DORAL. MUST SEE NOT A SHORT SALE, NOT A FORECLOSURE.
The ASSAL Team 