Happy Thursday – I hope you are doing well. For this week’s video, I want to discuss renting vs buying. I have spoken to a lot of people lately that are concerned about buying in our current market and are considering signing another 12-month lease. I understand affordability is an issue right now, but before doing that make sure you talk to someone who can run the numbers for you. If you can find a home that fits within your budget it is a great time to buy.
Running the numbers. If you currently pay $2k in rent, then the cost of another year’s lease is $24k. Also, due to low inventory we can probably expect a 5% appreciation over the next year. So, if you are looking at buying a $400k home, then that home will sell for $420k next year. In this scenario the cost of waiting is $44k.
Also, there is a reason that 90% of millionaires created their wealth through real estate. Please see attached buy vs rent analysis example. Rent Vs Buy Example
Lastly, we are offering a free first-time home buyers’ class and personal budgeting class on Zoom to help more people be prepared to buy their first home. If anyone attends both classes, we will also provide them with a credit to pay for their appraisal on their home purchase.
Please see below for our next classes.
First Time Home Buyers Class – May 16th, 12 EST
Personal Budgeting Class – May 30th, 12 EST
Cornerstone Mortgage Group
Georgia Residential Mortgage Licensee: 21412 • Company NMLS: 147913 • Individual NMLS: 147938