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Stop renting! 2016 is not the right time for you to buy a home for someone else

If you are currently renting you are, in actuality, a buyer.  The thing is, you are just buying a home for someone else.

renting-vs-buying-featuredIf low rates aren’t enough to persuade you to invest in real estate, record high rent payments might be.  In a recent article posted by Yahoo “American renters spend an average of about 30% of their monthly income on rent . . . but throughout the country, many people spend much more than that.  That’s an indication of a rent affordability problem in the U.S., given that housing experts consider consumers to be ‘rent-burdened’ if they pay more than 30% of their income for housing”

In another recent study, “In some areas, particularly in the south, it’s over 50% cheaper to buy.”

Let’s look at the numbers, consider this example from the North Carolina FHA:  “If you were to pay $1,550 per month, for example, and the average rental payment increase was 4%, you would pay $100,743.60 in a 5 year period toward rent.  If you purchased a home and borrowed $205,000 with a 3.75% interest rate (4.05% APR), and you paid $900 every year for maintenance, you would pay approximately $77,838.22 in a 5 year period toward mortgage.

If you’re ready to build your own equity and see the value in doing so, call us at the Rachel Kendall Team.  Together we will formulate a plan for your future, and your home ownership.


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