Philadelphia, Bucks and Montgomery Counties Real Estate. Tips for home buyers, home sellers by Gita Bantwal,Realtor at Re/Max Centre Realtors.: Should you buy a home or continue to rent ?

Should you buy a home or continue to rent ?

http://money.msn.com/home-loans/rent-or-buy-calculator

 

I came across this calculator on msn.com this morning.

I was amazed at the numbers.

I assumed current rent of $1200 per month and annual rent increase of 1%.

I assumed a purchase price of $200,000, and loan of $150,000 for 30 years at 4.5%.

The calculator allows you to input your property taxes , annual home insurance and annual maintenance costs.

I assumed clsoing costs to be $5000 and annual maintenance costs to be $1000. If you buy a home in good condition it is possible. I also recommend that you get a home warranty.I can help in reducing closing costs by negotiating with sellers.

If you are renting a home right now check out the calculator and give me a call.

It may be cheaper to buy than to rent.

I am an accredited buyer representative and can help you .

Call Gita Bnatwal at Re/Max Centre Realtors

2153438200x124 or 2152758491

 

When you read about events please check the year for the event as some people find information a year later and think it is for that year. . The posts remain online even after the event.

Gita Bantwal is a Realtor with RE/MAX Centre Realtors in Bucks County, a Northern suburb of Philadelphia. You can view 1000s of listings on her web site www.GitaBantwal.com

 

She can be reached at 215-343-8200x124 or direct 215-275-8491 or via email gita01@aol.com

If you would like a FREE MARKET EVALUATION OF YOUR HOME IN PHILADELPHIA, BUCKS or MONTGOMERY COUNTY call me at 2152758491

 Gita specializes in Active adult communities and is a Seniors Real Estate Specialist. She holds the ABR designation (Accredited Buyers Representative) and specializes in selling to first time buyers as well as move up buyers.Gita also hold the CRS designation , Certified Residential Specialist and the CDPE designation as well. Information about real estate market is deemed to be correct but is subject to errors and omissions and should be verified independently.. Opinion expressed by me or others  in my post and comments is not to be construed to be  legal advice.I am licensed in Pa. Check real estate laws in your state as they may be different than in Pa.

IF YOU WOULD LIKE TO SUBSCRIBE TO MY BLOG         CLICK HERE   OR EMAIL ME AT Gita01@aol.com

 

Comment balloon 28 commentsGita Bantwal • September 23 2013 04:35AM

Comments

My daughter is closing on her new home in two weeks.............she has been renting for too long!

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) almost 5 years ago

I carry on this conversation with clients all the time. When they see the actual numbers of owning instead of renting, it becomes a much easier decision. Great post.

Make it a great week!

Posted by Joe Petrowsky, Your Mortgage Consultant for Life (Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709) almost 5 years ago

Barbara-Jo, It is good to read that your daughter is buying a home as rates are still low.

Joe, Thank you for the comments. I hope renters will check it out for themselves.I always recommend that they talk to a loan officer and accountant .

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 5 years ago

Gita,

You are so right about this. The only problem has been the down payment for most average people who want to buy vs. rent.  Renting allows them to just get in to a property without all the "other" things. They envision it is easier and so that is why they do it. Many of the people don't even understand the tax advantage to owning. Also I tell them when they rent they are throwing that check out the window. Sometime that works.

Posted by Cheryl Eskridge, ABR, CRS, GRI, PMN, Broker, Licensed in WI & TX (Eskridge Real Estate) almost 5 years ago

This is the simplest answer to buy or rent. The hard part is getting folks to plug in the numbers and act!

Posted by Gary L. Waters Broker Associate, Bucci Realty, Fifteen Years Experience in Brevard County (Bucci Realty, Inc.) almost 5 years ago

Cheryl, I agree many do not have the down payment.

Gary, I hope they will read this post and check it out .

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 5 years ago

Good morning Gita,

This is a question often asked and you did a good job in answering it! Plugging in the numbers is the best way to see it in black and white! Suggested!

Posted by Dorie Dillard CRS GRI ABR, Serving Buyers & Sellers in NW Austin Real Estate (Coldwell Banker United Realtors® ~ 512.346.1799) almost 5 years ago

Gita, It's usually better to buy if you have some sort of down payment. Using this calculator is an easy way to see if buying is an option.

Posted by Lawrence "Larry" & Sheila Agranoff. Cell: 631-805-4400, Long Island Condo & Home Sale Specialists (The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803) almost 5 years ago

In many areas, Charlotte included, it is cheaper to buy than to rent and you'll get more for your money. Obviously, the trick is to have a down payment and a good credit score.

Posted by Nina Hollander, Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor (Coldwell Banker Residential Brokerage | Charlotte, NC) almost 5 years ago

Dorie, Thank you for suggesting. I hope it will help more consumers if it is featured.

Larry and Sheila, Consumers can plug in the numbers and see for themselves.

Nina, I agree they should see if they have the down payment.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 5 years ago

Good morning Gita...I hope you had a relaxing weekend and sell alot this week!

Posted by Kristin Johnston - REALTOR®, Giving Back With Each Home Sold! (RE/MAX Realty Center ) almost 5 years ago

Gita, it usually does end up purchasing a home is cheaper than paying rent to a landlord in the long run.     Even though the rates have slightly increased, still a good idea to run the numbers.

Posted by Joan Cox, Denver Real Estate - Selling One Home at a Time (Metro Brokers - House to Home, Inc. - Denver Real Estate - 720-231-6373) almost 5 years ago

Gita: It makes perfect sense to buy over renting if possible...build equity in your own place instead of helping someone build it in theirs!

Posted by Anita Clark, Realtor - Homes for Sale in Warner Robins GA (ColdwellBanker SSK Realtors ~ 478.960.8055) almost 5 years ago

Hi Gita.  When you throw in the tax deductions it is a no brainer.

Posted by Conrad Allen, Webster, Ma, Realtor (Re/Max Professional Associates) almost 5 years ago

Gita, 

Renting in my opinion is paying another party's mortgage payment. If one can scrimped together the downpayment then one in my opinion buy instead of renting a home or apartment. 

Posted by Robert Bob Gilbert, Your Katy TX ( West of Houston) Real Estate Expert (Berkshire Hathaway HomeServices Anderson Properties) almost 5 years ago

Good information, Gita.  Most folks will end up doing much better buy owning a home as opposed to renting.

Posted by Gabe Sanders, Stuart Florida Real Estate (Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales) almost 5 years ago

For those that plan to stay in an area, a home purchase is a great idea. And, now is a very good time to take advantage of very low mortgage interest rates. Home ownership includes many tax benefits as well.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) almost 5 years ago

Gita-thanks for the link to the Rent vs. Buy calculator.  I agree with Roy, if a person intends to stay in the area for ~7 years, or more, it doesn't make sense to rent.  In addition to a strictly financial advantage there also an emotion advantage to owning your own home and putting down roots for a families stability and not be at the whim of a landlord.  And in 30-years, the mortgage is paid in full.

Posted by Lloyd Binen, Silicon Valley Realtor since 1976; 408-373-4411 (Certified Realty Services) almost 5 years ago

Gita so many tools are now available to the numbers in to determine whether to buy or rent.  Although other issue also come into play.

When thing of buying in Bucks or Montgomery Counties PA call Gita Bantwal

Posted by Jennifer Fivelsdal, Mid Hudson Valley real estate connection ( JFIVE Home Realty LLC | 845-758-6842|162 Deer Run Rd Red Hook NY 12571) almost 5 years ago

Kristin, I had a good weekend.

Joan, It is a good idea to run the numbers .

Anita, I agree.

Conrad, They should talk to their accountant and see how much they will save.

Robert, They should set a budget and try to save each month.

Gabe, I agree.

Roy, If they plan on moving in a couple of years they should not buy as there are closing costs for buying and selling.

Lloyd, I agree.

Jennifer, They should not buy if they are not sure about their job stability and if they plan on relocating.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 5 years ago

I am counting the days until my daughter is once again a happy homeowner.....and NOT in a flood zone!

Posted by Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional, Palm Harbor, Dunedin, Clearwater, Safety Harbor (Charles Rutenberg Realty) almost 5 years ago
Gita, In my area it is cheaper to buy than rent. However many renters have challenged credit and are unable to qualify therefore stay where they are.
Posted by Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties) almost 5 years ago

Barbara-Jo, Congratulations to your daughter.

Valerie, I have tried it using 5% down and there are communities where it is still cheaper to buy.

Debbie, That is the problem here and the stricter guidelines make it difficult.

 

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 5 years ago

Gita, good calculator but the problem is most can't buy because they have no down payment that come to me on the lower end...so some really can't buy or should not since they can not manage finances well.

Posted by Ginny Gorman, Homes for Sale in North Kingstown RI and beyond (RI Real Estate Services ~ 401-529-7849~ RI Waterfront Real Estate) almost 5 years ago

Ginny, I agree.

Posted by Gita Bantwal, REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel (RE/MAX Centre Realtors) almost 5 years ago

I hope you are having a most productive week.

Enjoy the autumn colors with your camera in hand.

Posted by Roy Kelley, Roy and Dolores Kelley Photographs (Realty Group Referrals) almost 5 years ago

What a great tool...a real eye opener for some people!

Posted by Sharon Tara, New Hampshire Home Stager (Sharon Tara Transformations) almost 5 years ago

Hi Gita - 

Great tool for renters and even first time buyers.  Thanks for sharing!

-Jill

Posted by Jill Penman, Coconut Grove & Coral Gables Lifestyle Expert! (ONE SOTHEBY'S INTERNATIONAL REALTY) almost 5 years ago

Participate