Renting vs. Buying
Trulia Offers Rent vs Buy Calculator
Here's What You Should Know Before You Use It!
Trulia is focused on promoting their Rent vs. Buy Calculator.
Here's some things to think about:
$8,000 Homebuyer Tax Credit
The calculator does not take the $8,000 Homebuyer Tax Credit into account. This can make a big difference, particularly if you would have had to dig into savings (or use a credit card!) to pay your tax bill without the credit.
Record Low Interest Rates
Be sure to change the default interest rate from 6% (which was much more standard a year ago!) to today's rates, which can be as low as 4.75%, or possibly lower!
Accurate Property Tax Rates
Enter an accurate property tax rate amount. Check our easy guide to Triangle NC Property Tax Rates here. Many areas are much lower than the default rates. And remember, the property tax rate depends on the ASSESSED value, not the sales price of the home.
Property Taxes - Easy Guide to the Cheapest (and Most Expensive) Places to Live in the Triangle!
Annual Maintanence Cost
The annual maintanence cost will be very low on a new home (particularly with a solid, reputable builder and a full warranty), and could be much higher on a resale home. An easy solution could be to ask for an extended warranty, which can cover the cost of replacing the air conditioner, heater, etc and limit higher expenses.
Consider a 15 Year Loan
Want to reduce the amount of interest you'll pay? Consider a 15 year loan. Your monthly payments will be a bit higher, but the amount of interest you'll pay over the life of the loan will decrease significantly. Try an amortization calculator to see the difference.
Owning a Home
One more thing to consider - the calculator doesn't really show that at the end of 15 years, or 30 years, you will OWN a home, which you can then live in rent- or mortgage-payment free, or even rent out for additional income.
Just a few things to think about when using a calculator! Want to try it?
Trulia Rent vs Buy Calculator
You may also be interested in these popular articles:
Triangle Area Market Reports - How's The Real Estate Market in Raleigh?
Shopping in the Raleigh Area - What Kind of Shopping Is There?
Raleigh Relocation Package - All About the Raleigh Area!
Which Part of the Triangle is Cheapest to Live? Property Tax Guide
Finding Your New Home in the Raleigh Area
Stanton Homes makes it easy! We'll guide you through the entire process - select from thousands of different floor plans, and hundreds of different locations, with a focus on new custom homes in the upper $100s to the $500s. Custom design build options available too!
Call 919-278-8070 or visit www.StantonHomes.com to find out more about new homes in the Raleigh area today.
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Articles copyright Stanton Homes 2006-2011. Unauthorized use is not permitted. Provided for informational purposes only, no claims are made by Stanton Homes regarding the validity of any statements. Please note: all listing information per MLS, and current as of posting date. Information subject to change. Stanton Homes does not make claims to ownership of any lot listings, but can work with homebuyers to purchase available lots and build. Home plans to be approved on an individual basis, subject to neighborhood restrictive covenants and lot restrictions. Ask for further information regarding any community, lot or floor plan. Photos represent typical homes and details of each neighborhood, to help highlight different options available in the Raleigh/Triangle area. No claim of ownership is made to homes or land pictured.
Penny, informative post. the factors have definitely changed and buyers need to be informed. Thanks for posting this info.
True....but I like to think that people understand that online calculators are just guidelines and not absolute.
I must say I am glad here in Manhattan there is a large rental pool. Without that I may have had to look for work outside of real estate, and that's after 17 years as a broker here! My rental biz has been strong as many buyers are on the sidelines. We have not seen the kind of declines some of you have, so many are afraid there is still significant downside.
Also most city buyers are much more short term, very few will be staying for 15 let alone 30 years. So many folks here who bought in the past 3-4 years are really getting hammered and don't have "time on there side" to ride this storm out!
Another excellent calculator is Dave Ramsey's mortgage calculator so that clients don't get in over their head.
Vickie - a "calculator" still needs to have the right questions answered!
Karen - would certainly agree. If nothing else, go to your local lender and have them run a true comparison based on your situation.
Keith - We've been fortunate, Raleigh NC is still making the top 10 rankings on just about any "best place" vote there is! We had a positive 4% appreciation rate in 2008 when many other areas showed significant negatives. There is a move towards more affordable housing - which means smaller homes with fewer features. More buyers want to stay with something they know they can afford!
yes just like zillow zestimate, these calculators are just a guide and cannot be relied on 100 percent but just to be informative