Rent vs. Own

Rent vs Own
A case study on purchasing 614 Wyeth St

This case study was first published September 2009, 1 year after Great RE Market Crash, when there was an $8k government incentive to purchase homes, and at a time when there were ample appraisals to get thru the otherwise daunting task of appraisals in a broken market. While the timing relate matters are no longer relevant, this information still does a great job of explaining financial benefits of renting versus owning.

---------- $7k seller contribution ---------
I just sold a similar house at 623 Wyeth St. in May for $ getting this to appraise should be simple for the first 6 months after that sale ....which, given the new appraisal rules, is never a given these days.....And as long as this house appraises for $279k....I'll contribute $7k towards your settlement...

---------- $8k government credit -------
Credit expires November 30th, 2009...can purchase between now and November now and refile last years taxes for ~$125 accounting fee and receive credit check in mail

-----$13k in settlement costs drop to $5k once you receive your credit------
Total settlement costs for an FHA loan (down payment, expenses, mortgage insurance, etc) are ~$20k....I contribute $7k of that which brings them down to $ come to the table with $ the house....refile your taxes...receive $8k check from federal government, and you've just moved into a beautiful loft rowhome for $5k out of pocket!!

---------Mortgage Payment----------------------
The mortgage on that property for a 30 year fixed mortgage at 5.5% runs about $1950/month....sounds like a lot...but is it really? $300 of that is going towards that's like a forced savings account....~$1500 of that is tax deductible....which means it really only costs you about $1000 after itemized tax this $1950/month mortgage is comparable to paying ~$1150/month in rent!!! Why would you spend $1200-1800 in rent, when you can own for so much less!?!? Fixed rates have been fluctuating between 5 and 5%, that payment drops by about $80/month....likewise, 5/1 arms have been fluctuating around 4.5%....which drops that payment by $170/month!! That makes owning this comparable to renting for $980/month!

----------------Other Requirements-----------------------------
Minimum combined income of those looking to purchase is about $55k.....that assumes no other long term score of 680 or better assures the best rates....

Dont take my word for all this...... call Andy Duda.....tell him your income and debt info, and if you qualify, he'll provide you with a free HUD1 that details all this.....proof is on the paper....Andy's website

FINANCIALLY, THIS MAKES A LOT OF SENSE! OWN A 3BR HOUSE FOR COMPARABLE TO PAYING $980-1150 IN RENT!!!....AND DON'T FORGOT TO LOOK AT WHAT YOU GET IN A PROPERTY FOR YOUR INVESTMENT!!!Exposed beams, catwalks, stained concrete floors, roof deck, a heated floor, and much more...most likely not like anything You've seen before.  This is an opportunity to purchase a home that otherwise may be $15k further out of reach...