Renting vs Buying

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Real Estate

                                                                 “Friends don’t let friend’s rent,
                                     when they can buy!”


      Would you pay $18,000.00 to someone you don't know, just to know you will never get it back? This is exactly what you are doing when renting a house or an apartment. During this time that you are renting, you have no ability to do as you wish. In order to do anything you must consult the Rental Management Company or Landlord of any changes you wish to make. Lets say you don't like the carpet, or the paint, or the appliances. Unless the company handling your facilities says its ok, you as a person have no rights to change your setting.

       Although, being a renter is not all bad. It might allow you a little more leniency on your payment every month if times get hard. The company might be willing to work with you by you doing work on the property. If your credit score isn't where it is needed to be to buy a home, then it does allow you the opportunity to build your credit score up.

The Other side...

        Would you like to pay someone else that you don't know $18,000.00 with at least the chance of getting the money back one day? After a few years, if you decide to sell your home, you can make a profit, take a loss, or at least break even; but, you also have the ability to change what you want on your property(within the reason of the Home Owners Association in your neighborhood). Being free to own your home and do as you wish to it is a feeling you will never forget.



If you do not wish to see all the numbers and projections, scroll towards the ends and see the final ESTIMATE of comparison after 2 years.


         Lets say your rent payment is $750 per month(not counting utilities or renters insurance) then after 2 years the money you have spent would be $18,000.00.

                                                       When you move out you get nothing in return.

                                                                        Total Loss $18,000.00.


           The numbers below are only estimates. All pricing is determined by the buyer and the property they are purchasing. Every home and every buyer are different. All numbers are based on no assistance from the seller or from the government, local, state, or federal. Adding in assistance would drastically change the outcome of this scenario. There are many plans to discuss with your lender that can change these numbers for the buyers.

                        Contact us for GREAT LENDER info!

         If you get a Mortgage on a $100,000.00 home at 4% your PITI (Principle, Interest, Taxes and Insurance) payment is approx. $750 per month (not including utilities). After 2 years the money you have spent would be approx. $18,000.00. Buyers closing costs are around $6,000.00 (with the seller paying approx. $10,000.00) plus a 3.5% down payment to purchase the home.                 

        When you move out you have the opportunity to sell your home. You will have paid about $7,500.00 interest and about $3,500.00 towards the principle of your home after 2 years(the other $7,000.00 are towards Taxes (with NO Homestead) and Insurance). Now as the seller you will have an estimate of about $10,000.00 in closing costs that you will have to pay for.

       These number are also just approximates. Sellers will also have repair costs and anything the new buyer might want to ask for (like money) in order for them to purchase the home.

        Lets say (market willing) you want to sell you home for the $100,000.00 you paid. Market increase is about 3% per year in a Healthy Market you could estimate about $6,000 equity being in your home.


Lets look at basic numbers.

100,000-3,500= $96,500 total loan.

You put up $6,000 to start with in closing costs.

$96,500+$6,000=102,500 Into home.


$110,000+7000(Insurance and Taxes)=$117,000

$117,000-3,500(Principle)=113,500 Total after living in home 2 years.

Factoring in the $6,000 from market growth.



Listing this property at$110,000.00 is the ideal option here.

Here is an offer on the property that is for $107,000.00 asking for no seller assistance, that you would agree to take(since that is what the Market growth would call for). Now after $10,000 in sellers closing cost you have to pay. The total $97,000.00 to close. Balance to PAYOFF you existing mortgage would be Approx. $93,000.00. This would leave you with $4000.00 cash back to you. Put that money towards your losses over the last 2 years. Add in your other losses with interest at $7,500.00 and your initial $6,000.00. Your total loss would be $16,500.00


Rental Loss $18,000(no insurance)

Owner Loss $16,500(PITI + both side of closing costs)


          The biggest difference in owning and renting is based on your personal quality of life. To do things your way or to live by what someone else wants you to do. To be able to plant a tree and change out flooring or to live with what someone else tells you to live with. After 3 years these numbers start to sway more into the direction of the home owner. But up until this point they are pretty even.


                                                                           THE CHOICE IS YOURS TO MAKE.


Every city and county's market is different and every day brings new chances to live the American Dream of owning a home.

Please contact us asap if you know anyone or are considering buying!! We are ready to get them in a home!!


Mary, Bill & Stephen
The Holzinger Team
Better Homes and Gardens Real Estate
Main Street Properties

The time is right for a company with hometown values, local knowledge and world-class service.  We believe that the “one size fits all” approach that some large, franchised companies use, is not always the best in our local real estate market today.  Instead, we offer a more flexible, focused service approach powered by the “best of the best” local agents and cutting-edge technology.

We live here, own property here, and are personally invested in this community and its people. The beauty is, with Main Street Properties, we have created a world-class real estate company that reflects just that.