Second thoughts on homeownership?
Since the 2009 financial crisis, many people choose to rent. Renting might be the right option for you. San Diego market stats
REASONS TO RENT
cheaper monthly payment
more flexibility
don't qualify for the loan
Did you know that homeowners have 41x more wealth than renters? (source NAR)
Reasons people buy versus rent:
Search for homes
Call George Lorimer to discuss buying a home 619.846.1244.
My REALTOR fee is paid by the seller so it is free to work with me.
See this example
If you buy a house for $750,000 with 10% down, if it goes up 10% over two years, $75,000 in equity.
The mortgage payment is $2929 for 3.25%, $675K loan. In 2 years, your loan is $645,000.
If at $750,000 house goes up in value 10% total over two years, the new price is $825,000; the loan is paid down to $645,000.
$75,000 appreciation (5%/yr. for 2 years)
$30,000 loan buydown
$75,000 down payment equity
$180,000 in equity
So approximately $75,000 in appreciation and $30,000 in loan buy down means you now have $105,000 in equity after two years. ($105,000 equity/24 months) = $4375/mo, you are increasing your wealth.
Every month you pay $2929 in mortgage (probably another $1000 in taxes, INS, MI). You are getting a $4375 return on future wealth on appreciation and loan buy-down (equity). Not a bad investment!
BEAT OTHER BUYERS TO HOT NEW LISTINGS
In contrast, rent might be $2500/mo, a little cheaper but it keeps going up, and you don't get any:
Income tax savings
Since the 2009 financial crisis, many people choose to rent. Renting might be the right option for you. San Diego market stats
REASONS TO RENT
cheaper monthly payment
more flexibility
don't qualify for the loan
Did you know that homeowners have 41x more wealth than renters? (source NAR)
Reasons people buy versus rent:
Search for homes
Call George Lorimer to discuss buying a home 619.846.1244.
My REALTOR fee is paid by the seller so it is free to work with me.
See this example
If you buy a house for $750,000 with 10% down, if it goes up 10% over two years, $75,000 in equity.
The mortgage payment is $2929 for 3.25%, $675K loan. In 2 years, your loan is $645,000.
If at $750,000 house goes up in value 10% total over two years, the new price is $825,000; the loan is paid down to $645,000.
$75,000 appreciation (5%/yr. for 2 years)
$30,000 loan buydown
$75,000 down payment equity
$180,000 in equity
So approximately $75,000 in appreciation and $30,000 in loan buy down means you now have $105,000 in equity after two years. ($105,000 equity/24 months) = $4375/mo, you are increasing your wealth.
Every month you pay $2929 in mortgage (probably another $1000 in taxes, INS, MI). You are getting a $4375 return on future wealth on appreciation and loan buy-down (equity). Not a bad investment!
BEAT OTHER BUYERS TO HOT NEW LISTINGS
In contrast, rent might be $2500/mo, a little cheaper but it keeps going up, and you don't get any:
Income tax savings
- future appreciation
- equity from loan buydown
- the property is not yours, so you have to deal with the landlord's rules.
Categories:
San Diego Market Statistics
We would like to hear from you! If you have any questions, please do not hesitate to contact us. We are always looking forward to hearing from you! We will do our best to reply to you within 24 hours !