Many people are asking the should I rent verses buy in Phoenix AZ question. After the wild ups and downs of the past decade it is a valid and important question. Some feel the answer is strictly a numbers thing; We do not.
There are a number of factors we’d ask you to think about when asking the rent verses buy question in Phoenix AZ Below we’ll explore some of the questions and provide a rent verses buy in Phoenix AZ calculator to do some number crunching.
What are the advantages of owning or renting?
- Cost to Rent verses Buying.
- Rents change over time… mostly going higher. The chart to the right, courtesy of RentJungle, suggests rents are and will continue to rise in the Phoenix area.
- Mortgages stay the same over time if you have a fixed-rate loan with the exception of property taxes, HOA fees and insurance that can go up or down.
- Landlord pays for repairs if you are renting, you pay if you own.
- Value of the Home or Apartment
- Naturally, if you rent there is not personal gain if the value of the place goes up or down. Over time most homeowners do see an increase in the value of their place. We say, most because everyone knows what happened in 2007 when home and condo values dropped like a rock. That said, those were unusual times and not the norm we’ve seen over the past 80 years. Most experts are seeing very gradual property value gains over the coming years.
- As anyone whose rented a house for very long knows, most landlords eventually sell their places and you have to move.
- Although some people want a long term place to live, others do not. What about you? It is said many millennials want the opportunity to move for better jobs or a chance to experience a different place. We do not advise buying if you are not planning on staying in the same town for less than 5 years.
- Building a Family:
- If you are thinking of having kids perhaps buying a home is important to keeping kids in a more stable environment. If kids are in you future, perhaps buying a place before they arrive is a good idea so you do not add more change to an already changing life to the mix.
Naturally, there are a lot more question you can ask. Perhaps your parents can help explore the rent verses buy in Phoenix AZ question. You can also Google the question and get a list of additional things to think about. We believe a bit of upfront homework is a good idea and will help you make the best decision for you and your family. If we can help answer some question, please know we are not here to convince you to buy a place. Our goal is to give you quality information to help you make a good decision.
Below we have a Rent Verses Buy in Phoenix AZ calculator. Some of of the questions have variables you may not know how to estimate. We can help you with this.
Rent Verses Buy in Phoenix AZ Calculator
The rent verses buy calculator can help you figure out the financial side of the equation. There are some variables you may not know what to put in. Here are some approximates on the buy side of the calculator:
- Annual Appreciation: 3-4% is what we are seeing in 2014-2015.
- Interest rate: See the side bar for current interest rates in AZ.
- Years: The term of your loan. Usually 30 years or 15 yrs.
- Closing costs: Try 2% of the purchase price of the home.
- Property Insurance: Generally in the $800-$900/year.
- Property Taxes: A number in the $2000/yr range works for Phoenix homes in the mid $200,000 range.
- Maintenance: Hard to say as it varies house by house. Try $750.00/year.
We hope this post has been helpful. Feel free to contact us if you have questions or need someone to skillfully represent you buying a home or condo in the Phoenix area.
The Caniglia Group at Realty Executives
7600 N. 16th Street, Suite 100
Phoenix, AZ 85020
Connecting people to the perfect place for over 20 years.