What is your rent vs. buy ratio?

Using Azusa, CA as an example, you can probably rent a 3 bedroom + 2 bathroom home for $2,500 and purchase a 3 bedroom + 2 bathroom home for $480,000.

Check out Citrus + Palm, the last new community in the Rosedale community that offers resort style amenities! These townhomes start at $448,000+

Link here: http://liverosedale.com/neighborhoods/citrus–palm/

Depending on where you currently live or want to live in, the rental and home prices may vary but I hope this gives you a good idea on weighing the two options.

Price
Home for Rent: $2,500
Home for Sale: $2,278

This estimate is based off of the following:
Sales price: $480,000
Down Payment: $120,000 (25% down)
Rate: 4.75%
P&I $1,878, Insurance $67, Taxes $333

Costs
Deposit for Rental: $5,000
Security Deposit + First Months Rent

Down Payment for Home: $120,000 (can be less if you qualify but monthly mortgage payment will be higher) That’s $120,000 closer to paying off your home loan

Variables
Rents can go up year-by-year
If Rents are increased, you can move to another place
Renters are at the mercy of their landlords if landlord decides to no longer rent the home
Renters have the convenience of not needing to sell a home before moving
Your Mortgage stays fixed (if you choose that loan option)
Your monthly mortgage payment stays the same through out the loan
Your home value can go up and down but your payment stays the same
You can also refinance at a later time after building up equity to stretch out the loan for an even lower mortgage payment if desired
If a homeowner needs to move, it may be hard to sell the property quickly
The homeowner knows they can live in their own home as long as they desire

Make it yours
Renters are typically not allowed to conduct any renovations
If you are allowed to renovate, you will be renovating someone else’s house
Homeowners can remodel, renovate, improve the home to increase its value and make it your own!

Maintenance
Renters are typically not responsible for repairs
At times, Renters can wait a long time before something gets addresses or fixed
Homeowners have to cover the cost of any repairs or replacements

The bottom-line is that for every rental payment you make to your landlord, that is an extra month you will get to stay in their home. For every mortgage payment you make, you own a little more of your home free and clear. Often times people are intimidated when it comes to buying a home. Whether thinking it costs more to buy or not knowing how much to save for the down payment + closing costs. Its never too early or too late to start!

Thank you for reading!

JUDY HA
Blackrock Investments and Finance, Inc.
direct (951) 963-4023 | cell (626) 731-4485 |fax (626) 529-0850
email  judyha19@gmail.com | web  http://www.realtorjudyha.com
CA BRE: 01884583
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