With the real estate market being in the doldrums the last three years we have seen home prices move back in line with incomes.  This means that as prices drop more and more people can afford to buy homes.  At some point buying becomes more appealing than renting.

In 2002 only 7% of buyers were first time buyers.  In 2010 that number jumped to a whopping first time buyer ratio of 46%.  Our business has been consistent with these numbers as many of our clients have referred their children and friends to us to see if they could move from renter to owner.

A scenario we are currently working with is a client that is paying $2,400/month in rent.  They are able to purchase a similar home in the same neighborhood they are renting in for a payment of $2,975/month.  By purchasing, the client will have a tax deduction for mortgage interest and property taxes which saves them approximately $375/month in Federal Taxes.  When we take into account the tax savings against the new payment the idx payment is equivalent to paying rent of $2,600/month.

This payment is only $200/month more than their rent and only required a down payment of 3.5%.  The client will no longer be forced to move if the landlord sells the property, changes their mind or raises the rent.  Essentially the cost to buy vs. rent is now in equilibrium.

If we can be of any assistance to you, your family, your children or your friends feel free to Contact us.