CS Real Estate Texas
Carl Stidston EXP Realty DFW & Surrounding Areas, TX
Mobile: 817-598-6706

Rent VS Buy


Is Your Money Working for You?

Upward trends in home prices, all-time lows in mortgage rates combine with financial advantages of home ownership, making this a better time than ever to consider purchasing your own home.

Homeownership is not just buying a place to live, it is also an investment in your family and your future.  For most Americans, the equity built in a home is a large part of there wealth and net worth heading into retirement.

If you are wondering if you can afford to buy a home, you should really be asking yourself, can you afford to continue to rent.  Paying rent does nothing to help you with your future financial security or stability and is ultimately helping someone else achieve their retirement goals.

Regardless of how much you are paying in rent, you would be surprised to breakdown how much you are spending over time and how much that could be a nest egg in the form of home equity.

The chart shows how much a given rent payment will add up if it were invested at 5% interest.

Keep in mind that in the DFW market area the average increase in home value is between 5-12% per year.

 

Rent Paid / Mo Rent paid 10yrs $ If Invested Over 10 Yrs Rent paid 20yrs $ If Invested Over 20 Yrs Rent paid 30yrs $ If Invested Over 30 Yrs
$800 $96,000 $124,227 $192,000 $328,830 $288,000 $665,811
$1000 $120,000 $155,284 $240,000 $411,036 $360,000 $832,263
$1200 $144,000 $186,340 $288,000 $493,243 $432,000 $998,715
$1500 $180,000 $232,925 $360,000 $616,553 $540,000 $1,248,392
$2000 $240,000 $310,566 $480,000 $822,070 $720,000 $1,664,522

 

Getting Started

The first step to homeownership is to examine your finances; you could be closer than you think! 

Look closely at your debt to income ratio, unlike the past, you no longer need to have 20% down payment in cash. 

Today's home loans can be obtained with down payments as little as $0 with VA or USDA loans and 3.5% down with FHA financing or 5% with Conventional, plus closing costs.  Some costs can be even further reduced by taking advantage of today's variety of down payment assistance programs.