Renting vs Buying - Where are you now?
Did you buy in the housing boom? Want to sell your home now?
Over the last year, I have heard from a few prospective sellers that say I made a bad decision and should have never bought when I did. You may have this same thought if you purchased your home in 2005 through 2009.
Let’s dig into this deeper.
For an example you purchased your home in Virginia Beach at the end of June 2005 for $300,000 dollars. Say today, it is worth $250,000. Say if you had rented a home of the same value – rent would be maybe $1,400 a month.
For a case study- We will use June 2012 as the ending point with would be 7 ½ years.
If you take $1400 a month in rent paid each month for 7 ½ year that is $16,800 x 7 ½ years or $1400 a month to 90 months = $126,000- Wow.
Now, don’t forget that the government gives you an opportunity to reduce your taxable income on your primary residence by the amount of interest paid on the loan.
Which would you rather have nothing for $126,000 or something that you can call home? Like many of you, I purchased my home in 2005 in the housing boom, but when I look at this way, I think to myself I am glad I was not renting all that time making someone else rich.
Thinking about buying a home or selling a home in Virginia Beach or South Hampton Roads?
Call me at 757-816-1676 or...