Is it cheaper for you to rent or buy? We'll show you how many years it will take before the cost of buying equals the cost of renting - the breakeven horizon. If you'll stay in your home past the breakeven horizon, consider buying; if you'll move sooner, renting might be a better option.
After 1 year and 3 months, buying will be cheaper than renting.
Cost:After1year, your total cost of homeownership (down payment, mortgage, taxes, etc.) for a$114,700homeinMcallen, TXwould be$38,565. Your total cost to rent would be$17,711.Renting leaves you with$20,854in your pocket (including the money you didn't spend on a down payment).
Gain:After1year, if you buy, your home will have$30,348in equity (available to you when you sell).However, if you instead rent and invest your down payment and the other money you save, at a6%return rate it will earn around$1,160in1years.
Bottom line:Looking at your gross costs, equity and investment potential, it's better for you to buy than rent if you plan to live in your home more than1 year and 3 months.
Author:Marilyn Cortez Phone: 956-587-1633 Dated: November 19th 2015 Views: 350 About Marilyn: Always ahead of the highly competitive RGV real estate market, Marilyn Cortez is a Spanish speaking ...
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Always ahead of the highly competitive RGV real estate market, Marilyn Cortez is a Spanish speaking native of the Rio Grande Valley. Born and raised in Mission, Marilyn is committed to her clients, and is recognized as a Top Agent in the Greater McAllen Real Estate area, and within Keller Williams Realty. Since the start of her Real Estate career in 2007, she has sold over 40 million dollars of real estate. Known by her fellow real estate agents to be hardworking, honest, dedicated and motivated, Marilyn is knowledgeable in all areas of Real Estate and has built her business on results, with more than 70% of her clients being repeat clients.