Will Buying a House Save Me Money?

Did you know the average housing rent in Cumberland County is $977/month*?  And let’s face it, it’s only going to go up, because that is what rent does.  The national average for annual rent increase is 3.6% per year.  If you buy a house today and the payment is higher than what you prefer, it’s still better in the long run than renting and here is why.

Let’s look at the cost of owning a $150,000 house.  Your estimated monthly expense would be $1040, compared to renting and renters insurance, your monthly rental expense would be $992 in year 1.  But by year 9, your estimated monthly rental expense would be $1257.  After 9 years, you would have saved yourself $6,990 in cash flow.  That is $6,990 in extra money in your pocket, and I’m only assuming a 3% annual rental increase.

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But keep in mind, it’s more than just cash flow that you are saving.  At the end of 9 years, your $150,000 property would be worth roughly  $219,903 (assuming a 4.18% appreciation in the housing market). That is a $66,903 increase.  Take that $66,903 and add it to the $22,067 in amortization gained (paying down of the loan) and you just gained $79,947!!

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So will buying a house save you money?  Yes, not only will you save money monthly in the long run, but you will also gain appreciation in your home. It may be a slightly higher monthly payment than what you like or want, but if you can drink a few less Starbucks, you could be $80,000 richer.  Housing costs are the most expensive payment for most people.  It might mean paying a little more today, than a tremendous amount tomorrow.

*As of Jan. 10, 2018

To find out more information give Team Rebecca a call at 717-609-4044 or go to our website: www.RebeccaFoote.com