If you are renting an apartment or a home right now, I've got some great news for you!  I also have some not so good news as well.

     I have a friend of mine who is responsible for managing over 10 apartment complexes in Texas.  She has documented the statistics of her tenants each and every year.  What she has found may or may not surprise you.  She found that over 70% of her tenants move after being in her complex the first year.  Most everyone else moved after the second year.  That's almost a 100% turnover rate for her apartments in a two year span. 

     The National Association of Realtors stated in their annual report that over 40% of home purchases over the last ten years have been made by first time home buyers.  Almost 70% of them rented before purchasing their first home.  What does this mean for you?

     It means that when your family grows, so does your need for more space; hence the desire to find an affordable home; your first home. Before we talk about purchasing your first home, check out these statistics.

                                                               Your Rent Adds Up...

Monthly Rent               1 year               2 years               3 years               4 years               5 years

$500.00                     $6,000.00            $12000.00          $18,000.00         $24,000.00         $30,000.00

$600.00                     $7,200.00            $14,400.00         $21,600.00         $28,800.00         $36,000.00

$700.00                     $8,400.00            $16,800.00         $25,200.00         $33,600.00         $42,000.00

$800.00                     $9,600.00            $19,200.00         $28,800.00         $38,400.00         $48,000.00

$900.00                    $10,800.00            $21,600.00        $32,400.00         $43,200.00         $54,000.00

$1000.00                  $12,000.00            $24,000.00        $36,000.00         $48,000.00         "Get it"

...and your landlord thanks you very much!

Isn't it time to fire your landlord???         

Rent Vs. Buy Comparison

Purchase Price:         $130,000.00                                          Name: Redy Tu Ohn

Loan Amount:              $130,000.00                                          Date:  Today

Monthly Payment:

Principal & Interest:         $779.42                           Interest Rate:      6.000%

Property Taxes:               $165.67                           Annual Taxes:  $2,000.00

Hazard Insurance:            $41.67                             Annual Insurance:  $500.00

Mortgage Insurance:        $63.92                             

Total Monthly Payment:  $1051.67

Interest Deduction:            $182.00                             Assuming Income Tax Rate of 28%

Property Tax Deduction:   $46.67

Property Value Appreciation:  $325.00                      Assuming Annual Appreciation of 3%

After Tax Payment:            $823.00

Effective House Payment:     $498.00                         Current Rent Payment:     $650.00

***This example is for illustration purposes only and should not be construed as tax advise.  We recommend you consult with an accountant regarding tax deductibility and tax rates.

With all your deductions and equity building, it makes sense to invest in a home, and not pay someone else your hard earned money.  When you are ready to make the switch from renting to buying, I would be honored to assist you.  I hope you found this page to be of value to you.  Please call me Matt Smith @ 319-431-5859 to schedule an appointment with my preferred lenders.  We have first time home buyer loans, IFHA loans, VA loans, and other solutions to get you into your first home.