Buy vs. Rent ? 2011

ATTENTION

Parents of University of Arkansas students...

Do you have a child that is or will be attending the U of A?  I have put together some conservative numbers you need to view if your child will be living off campus and renting a place to live.

Let's assume the following:  A modest 3 bedroom, 2 bath home around the U of A campus. I have allowed for an estimated $100/month on maintanance on the buy side.

Rent $850/mo OR purchasing for $150,000 (or less)

Considering taxes/insurance/maintanance costs and living in the home 5 years.  If the house DID NOT appreciate in value at all and you sold it for what you paid after 5 years...

GUESS WHAT!?  You will be ahead $5516.18.  NOTE:  this doesn't consider if your child has 1 or 2 room-mates to chip in on YOUR investment. Again, I have used VERY conservative numbers.

NOW....let's say we are a first time home buyer. 

The tax bracket will most likely be different and we will be able to utilize other loan types, ie:  FHA or RD.  You will also most likely stay in the home a little longer.

GUESS WHAT?!  YOU will be ahead an astounding $16,969.85.  Again, this is based on a VERY conservative equity appreciation of -0- after 10 years AND the cost to purchase would most likely be less than $6000. (FHA)

There has never been a better time to buy. 

Please let me help you navigate this market. 

I provide the knowledge, experience and negotiating strategies YOU need.

479-841-7302

Kim Rutledge, Executive Broker

kim.rutledge@coldwellbanker.com

Over 17 Years Experience

Northwest AR Real Estate