Buying a Greater Bay Area Home? Search all Homes for Sale
I get a lot of questions about whether one should buy or rent a home. To learn more about the pros and cons of this situation, I'm going to lay out an example for you.
Let's say you buy a standard $800,000 home with 20% down. This would make your mortgage payment close to $4,000 a month. If you were renting this same home, it would be around $3,500 a month.
That's a monthly differential of about $500, but you can't just stop there. Owning a home has many tax benefits, so with this particular property, you can write off about $4,000 per year. This will take off about $800 per month from your mortgage payment, so your net payments when you buy will only be $3,200 per month.
The other thing to consider is that a home will appreciate when you buy it. If the home appreciates by only 4% per year, in two years you'll have a home that is worth $65,000 more than what you purchased it for.
You'll also be paying down the mortgage, so you'll have an extra $10,000 from those payments.
Instead of paying for someone else's mortgage, invest in your own future with a home purchase. Now is a great time to buy. Affordability is high and interest rates are low, so you have a great opportunity to buy a home.
If you need any assistance whatsoever, please don't hesitate to contact me. I'm always willing to help you!
