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NAR News (National Association of Realtors / 전미 부동산 중개인 협회)

(마이애미) Buy vs. rent: 5 things to consider – Florida Realtor News (마이애미)

(마이애미)

PITTSBURGH, Pa. – July 1, 2016 – Buying a house is the largest investment most people ever make, and it’s not a decision you should enter into lightly, say personal finance experts at the Pennsylvania Institute of Certified Public Accountants. If you’re considering making the leap from renter to owner, there are some things you should consider.

Where you are
A 2016 study from the National Association of Realtors found that more than one-third of all homebuyers are 35 and younger. While people five or 10 years older might still be recovering from the housing crash, millennials seem ready to start a new chapter in their lives. And this group may be onto something.

In 70 percent of the major markets across the nation, buying beats renting in less than two years. A Zillow analysis of rent vs. purchase costs found that it takes an average of 1.9 years to break even on a home purchase. In larger cities, you would need to live in a home for three years or more to break even on comparable rent, but that number drops to 1.5 years or less in Cleveland, San Antonio, Kansas City, Houston, Atlanta, Detroit and Indianapolis.

When to buy
A study from Black Knight Financial Services analyzed national price appreciation and household income. Today, 21 percent of median income is required to purchase a median-priced home with a 30-year fixed-rate mortgage. Considering the current rate of home price appreciation, combined with a 0.5 percent annual increase in mortgage interest rates, it may become more difficult.

If home prices and interest rates continue to rise at the same pace, the average monthly payment on the median home will rise by $114 within 12 months and would be $240 more per month in 24 months.

How long to stay
House prices fluctuate year to year. And you’re leveraged when you buy, so a price drop of just 5 percent could mean a huge loss if you have to sell. However, if you own for five or more years, there’s much less risk. Home prices are more likely to move at least a bit higher over longer periods of time. And you’ll have built up more equity in your home by paying down the mortgage over five years that will cushion you against a drop in prices.

Affordability
CPAs advise not spending more than 28 percent of your gross pretax income on your monthly housing payment. Another rule of thumb is that your combined debt (housing expenses, credit cards, student loans, alimony, car loans, etc.) should be between 30 percent and 40 percent of your pretax income.

Costs of remaining a renter
Renters aren’t immune from price increases. If you live in a popular neighborhood with no rent control, your rent is most likely to rise over time. A fixed-rate mortgage won’t increase, and you will build equity if you own rather than rent. Also, there aren’t any tax write offs available to renters; your landlord generally gets those honors.

When you sit down and crunch the numbers, does it make more financial sense to buy or rent? There are many free calculators online to help you create and analyze different financial scenarios. If now isn’t the right time, you can continue to save for a downpayment until you’re ready.

A CPA can help
As a trusted, independent financial advisor, a CPA understands the different options available to you.

Copyright New Pittsburgh Courier Jun 8-Jun 14, 2016

(마이애미)

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About jennyformiamihome

성심껏 도와드리겠습니다. 연락주시면 바로 상세히 답변드립니다. Jenny Shin / 신정미 부동산 (Broker's Real Estate) 남부 플로리다 마이애미 지역 한인 부동산 주택매매 렌트 싱글하우스 타운하우스 콘도 브라워드 카운티 마이애미 데이드 카운티 포트로더데일 웨스턴 코랄스프링 도랄 Rent or Buy single house, town house and Condo Miami Dade County / Broward County, fort lauderdale, coral springs, copper city, weston, doral 2225 N. Commerce Pkwy #9 Weston, FL. 33326 Direct : 954-551-0236 Office : 954-384-1616 Fax : 954-697-0447 E-mail : jenny_shin62@hotmail.com

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JENNY SHIN PROFILE


Jenny Shin / 신정미 부동산
(Broker's Real Estate)
2225 N. Commerce Pkwy #9
Weston FL 33326
Direct : 954-551-0236
Office : 954-384-1616
Fax : 954-697-0447
E-mail : jenny_shin62@hotmail.com

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