Have you thought about how much you’ve spent on rent to pay off someone else’s mortgage? If not, you may want to think about this. Let’s say you’ve been renting for the last 5 years with an average rent of $900/month. That’s $54,000!
What have you gotten for your $54,000? A place to shower, eat and sleep. A place to have friends over. A place to store your things, such as furniture. If you moved to Austin from a different area, renting for a time is a good way to get to know the city and figure out where you belong. If you’re a recent graduate, you may need time to build credit and employment history.
What have you not gotten for your $54.000?
Pride of ownership. Owning a home can provide a sense of accomplishment, stability and security. When you own a home, the changes you make reflect who you are or who you want to become. Painting the walls, changing the flooring, adding new fixtures all reflect your personality.
Freedom from helplessness. Contacting your landlord or management company and waiting for a repair to be fixed can be irritating, especially if it’s something you could correct on your own. Not to mention all the little things you pay for without reimbursement for your rental such as lightbulbs, carpet cleaning, cleaning supplies (I couldn’t move in somewhere without cleaning it first- ew!) and the time it takes to maintain your rental unit each month—how much is your free time worth? These little things add up. In the end all the time and money you’ve invested in your rental is gone, it’s an extra added value to your landlord and for the next occupant.
Is home ownership for everyone? The truthful answer is no. Many people, such as young professionals or single persons who are just starting their careers may move frequently to further their professions. Career professionals who travel frequently may not see the need to invest in home ownership when they’re not around to enjoy or maintain a residence. For some, renting is less expense than home ownership if they can find suitable housing for a reasonable value.
What is the biggest benefit to owning a residence? From a financial perspective, it makes good sense to own property. That $54,000+ you’ve spent on rent and the personal investment you’ve put in to your temporary housing could have been giving you financial gain. Home owners benefit financially by deducting interest paid on their taxes. The principal you pay each month to pay down your mortgage is like money in the bank in the form of equity. Sure, the market values fluctuate, but any profit you earn upon selling is tax free--$250,000 for single and $500,000 for married once you’ve lived in your residence for a total of two years out of five years! Priceless.
Did you know the Austin median home price has gone up by 9% from May 2014 to May2015*? That may not sound like much until you realize that $225,000 home will now cost you $245,250! According to Census Data from the City of Austin Demographer, Austin’s growth rate is expected to rise 150% over the next 35 years. What this translates to is housing in Austin area will most likely continue to rise in price. The question is how long you are willing to think about purchasing. Contact me to schedule a home buyer information appointment!
*ABOR May 2015 MLS Market Report
Author:Shapley Realty Phone: 512-380-1823 Dated: July 24th 2015 Views: 310 About Shapley: ...
Shapley Realty is a full service real estate company dedicated to doing business differently and setting a new standard for service in the real estate industry. The company was founded by Ray Shapley, a top-producing agent who wanted to bring a consistent, customer-centric level of service to an industry of "hit or miss" service. Shapley Realty is focused on proactive, results based service for our clients.
High Standards, Results, Great Service, Happy Clients
We are building a business in which high standards permeate all aspects of our company. Our motto — High Standards, Results, Great Service, Happy Clients — emphasizes that our vision reaches far beyond any single transaction.
Our ability to instill a clear sense of client–centric service among our team and service is contingent upon our efforts to communicate more often and more openly. Better communication equals better understanding and more trust.
Service Begins With Results
Our clients are the most important piece in our business. Therefore, we go to extraordinary lengths to deliver results, because results are why our clients hired us in the first place.
• Clients are the lifeblood of our business and we are interdependent on each other.
• Clients are the primary motivation for our work — they are not an interruption of our work.
• Clients are people who require a service from us and our primary objective is to satisfy them as best we can — they are not just another transaction.
We seek to deliver results for our clients as well as an experience that is fun, unique, comfortable and educational.
We continually experiment and innovate in order to raise our service standards.
We want to deliver a new level of service, knowledge, communication, results and respect to our clients.
We welcome you to our family! Texas Real Estate Commission Consumer Protection Notice
There was a time not long ago when the feasibility of owning a home i
"Shapley Realty treated us like were exclusively their clients, when I know that is very well not true. Communication wether by text, and email was always immediately responded to if not shortly thereafter which is extremely to a first time homebuyer. Ray and everyone on the team made it so that we were comfortable every part of the way and we always felt first class. Thanks Ray! "