Should I Rent or Should I Buy…How Do I Calculate It?
With interest rates being so low and so many former home owners having to sit on the sideline waiting for their credit to be in good shape again, thus driving rental prices up the answer is resoundingly in the buy column.
You can see the results for yourself, check out craigslist for rental properties and look at property values in that same neighborhood for a similar property for sale. With current mortgage rates, you can determine rather effortlessly that if you were able to purchase that home, you could rent it out for a profit.
For many people the question is the stability of the market and weather or not the housing prices will come down. But if you are throwing money away every month on rent instead of purchasing an investment where your interest is a deductible and that same money thrown into rent is going towards building equity, then you are just hurting yourself in the long run.Mortgage rates can not stay this low for long and a 1% increase will effectively cost you $250 a month on a $400k house and $80k over a 30 year loan in interest.
There are 3 bedroom houses Santa Clarita that would have a mortgage payment of $1500 and lower. Finding a 3 bedroom to rent for under $2000 is difficult,as many of them are more than that and they do not last long.
Check out this Rent VS Buy Calculator//
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