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October 8, 2010 | No Comments YetTags: buying vs renting a home, eastside petaluma, homebuyer, petaluma
Recently, I had a buyer at one of my open houses have an “aha” moment when considering buying vs renting a home in Petaluma. She checked out our flyer which showed 4 different payment scenarios. She found out her monthly payment on a purchase would be less than her current monthly rental payment. With home prices and mortgage rates as low as they are now you can actually own a home or condo for the same price you are paying in rent.
In this rent vs. buy analysis I have a chosen a home on the Eastside of Petaluma, CA. The home is currently an active listing on the market. The assumptions in the graphs assume 2% yearly rental increases and 2% property appreciation. The analysis was designed to show the benefit of home ownership.
This first graph shows your Net Monthly Payment. As you can see after the tax savings and principal reduction are factored in, the ownership side becomes more advantageous.
This second chart shows the benefits over time. The analysis shows the increase in equity you build and cost savings achieved.
As you can see at the end of 30 yrs in our chart there are clear benefits to purchasing this home in East Petaluma.
Thanks to the Michael Regan from the Regan Team Home Loan Group with Mason-McDuffie Mortgage for providing the charts.