Buying vs Renting

Buying vs. Renting
There are many considerations to weigh before purchasing a home
- Fri, Feb 22, 2008
Provided by Informa

A home is one of the most expensive purchases most of us will ever make during our lifetime. Whether you decide to rent or buy, either choice comes with its own rewards and risks. Homeownership offers many advantages over renting including:

Advantages of Buying versus Renting
Buying Renting
Tax write-off No tax write-off
You can upgrade your home as you see fit Need permission to make any changes
Build equity in your home as value appreciates Your money goes toward the landlords equity
Control of loan payment options Rent can increase periodically
Pride of homeownership You have no ownership

While owning your own home has many benefits, there are still risks to consider:

Disadvantages of Buying versus Renting
Buying Renting
You're responsible for property maintenance Your landlord or manager handles general repairs
Need to sell, rent or lease property in order to re-locate. May have to wait until market conditions are right Freedom to move once your lease expires
You pay for all your own utilities, property taxes and insurance May include utilities, property taxes, and property insurance
Home improvement upgrades can run into thousands of dollars You're not financially responsible for improvements
However, all things considered, homeownership is by far one of the best single investments you can make given the potential long-term benefits.

When does it make sense to buy?

People, who have generally rented their whole lives, purchase a home for various reasons. Owning something of value with a chance of watching their investment appreciate is one reason. Purchasing a home to save money over the long-term is another.

Example

Let's say you're currently renting a two-bedroom, two-bath apartment. Your monthly rent is $1,000. You find a two-bedroom, two-bath at a market price of $250,000 (roughly the national average.) You have $25,000 saved - enough for a 10 percent down payment. For the purpose of this example, you're looking to finance $225,000, which includes closing costs.

Using one of several mortgage calculators on the Internet, your monthly payment would be approximately $1,385 for a 30-year fixed loan at an APR of 6.20 percent (the national average). After taxes and appreciation in equity, your monthly payment over five years would average $499 per month.

Costs Savings of Buying versus Renting
Calculations Rent Purchase
Monthly rent/estimated mortgage payment $1,000 $1,385
Purchase price of home $250,000
Percentage of down payment 25,000
Length of loan term (years) 30
Interest rate 6.2%
Years you plan to stay in the home 5
Yearly property tax rate 1%
Yearly home value appreciation rate 4%
Results
Price of home after appreciation $304,163
Remaining balance after 5 years 209,887
Equity in house 94,276
Tax savings (28% bracket) 23,030
Avg. monthly payment over time 1,047 499
Total payments (over 5 years) $62,820 $29,973
Total savings if buying $32,847
Source: Ginniemae.gov. These calculations are estimates only. You should always seek the guidance of financial or tax experts before making any buying decisions.

The outcome could dramatically change should an unforeseen economic downturn or financial hardship occur (e.g., home improvement costs, catastrophic damage, etc.). While, no one can predict if home appreciation values will spiral downward, or if mortgage interest rates will rise, it's clear that under the right circumstances home ownership can be financially rewarding.

Berkshire Park--Pinehurst

1515 Jobs

Paint: BA= painter
--living room
--dining room
--kids bathroom
--jack's room
--touch up painting throughout

New appliances: HOME DEPOT
--stove
--dishwasher

Lights:
--recessed lights in kitchen

Outside:
--lawn maintenance
--paint cement steps BA?
--peel privacy glass off front door
--power wash deck
--paint deck BA?
--gardening/flowerpots on steps

Flooring:
--steam clean all carpets w/spot treatment
--replace carpet in family room

Remove:
--shelves in Max's room
--animals from office
--stuff from garage so car fits

Caulk:
--around sink/tubs in bathrooms

Fix:
--Jack's broken window
--step up to deck

Install:
--shelves in Max's walk in closet



DECLUTTER EVERYWHERE

1515 Hornbeam Dr

Zestimate™ Ranking
Zestimate™ Ranking This home at $749,264 is valued higher than: Zindex™ (Median Zestimate)
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What's a Zindex?
The Zindex is Zillow's Housing Index and is the median Zestimate™ for a given geographic area on a given day.

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• 99% of homes in 21114 ZIP code $362,522
• 99% of homes in Crofton $362,444
• 93% of homes in Anne Arundel County $345,008
• 94% of homes in MD state $314,059
• 93% of homes in United States $249,294
Historical Value Trends display options
Historical Value Trends Show as: % $ % annualized
Past: This
home 21114 Crofton Anne Arundel MD US
30 days -2.0% -1.3% -1.3% -0.5% 0.5% -2.6%
1 year 1.3% 4.5% 4.6% 7.7% 11.3% -2.8%
5 years 85.0% 105.2% 105.1% 107.0% 127.8% 67.0%
10 years -- -- -- -- -- 118.3%
Since last sale (09/24/2004) 21.9% 36.9% 36.8% 41.3% 49.7% 24.3%
30 days -$14,921 -$4,820 -$4,631 -$1,782 $1,695 -$6,718
1 year $9,807 $15,763 $15,837 $24,695 $31,932 -$7,275
5 years $344,225 $185,828 $185,739 $178,345 $176,166 $99,998
10 years -- -- -- -- -- $135,073
Since last sale (09/24/2004) $134,695 $97,673 $97,596 $100,821 $104,241 $48,782
30 days -21.3% -14.8% -14.3% -6.1% 6.8% -27.6%
1 year 1.3% 4.5% 4.6% 7.7% 11.3% -2.8%
5 years 13.1% 15.5% 15.5% 15.7% 17.9% 10.8%
10 years -- -- -- -- -- 8.1%
Since last sale (09/24/2004) 8.4% 13.6% 13.6% 15.1% 17.9% 9.3%

Note: Value trends are based on Zestimate and Zindex values, not sale prices

Trump Condo-Hotel Sells Out for $700M

Trump Hawaii condos sell out for $700M
By BRIAN CHARLTON, Associated Press Writer Fri Nov 10, 9:36 PM ET
HONOLULU - Celebrities and investors forked over $700 million in just a few hours to buy up more than 460 suites in Donald Trump's luxury hotel-condominium project in Waikiki.

Sales contracts were signed and deposits put down Thursday for 464 hotel suites at the Trump International Hotel and Tower Waikiki Beach Walk, developers said. The sellout forced the cancellation of a planned second day of sales.
Developers said the sales set a record for the amount of residential property, both in dollar value and unit volume, sold in one development on a single day. The previous record was set in December 2005 when Vancouver-based Intrawest Corp. sold 318 suites in the first phase of a Maui resort for $425 million, according to the Los Angeles-based developer Irongate.
Trump featured the development on his TV reality series, "The Apprentice." The Trump sale attracted celebrities including entertainer Don Ho, NBA players, and pro golfers, along with a Japanese rap star and baseball player, said Jason Grosfeld, co-founder of Irongate.
He would not identify the other investors by name.
"I would have bought out the entire 23rd floor, but someone beat me to it," Ho, who purchased two one-bedroom units, told the Honolulu Star Bulletin.
The average price for a suite was $1.5 million, a 500-square-foot studio for about $400,000, and a three-bedroom penthouse for more than $9 million, developers said.
The 38-story tower will include a library, wine cellar, lobby bar, cafe, fitness center, spa, among other amenities. Construction is scheduled to begin in December and to be completed in mid-2009.