Why Renting Makes Sense

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Shared by: hermanrose24
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Why Renting Makes Sense Why rent … ...when you can buy? Convenience In comparison to those buying a house, you can enjoy a number of distinct benefits by renting an apartment home: You’ve probably been told that renting instead of buying a home  Cost & Time Saved! No shoveling, mowing or pulling just doesn’t make sense! weeds! Let’s take a closer look at that… We’ll show you the simple economics, freedom and conveniences in renting an apartment home and why it makes sense to rent! The advantages of renting vs. buying are about to become a whole lot clearer!      Maintenance free living!! No paying the Plumber! Call the office and it’s taken care of! 24 Hour Maintenance - your problem is taken care of! NO EXTRA COSTS for Maintenance Repairs! SAVE TIME by not having to do the repairs—just make a phone call and it’s taken care of! Economics As indicated by the chart on the reverse side you’ll enjoy monthly savings by renting as opposed to buying at a comparable quality and location. These numbers are estimates, however, they clearly reflect the bottom-line realities of the current real estate market. You Don’t Have to Buy to Enjoy Luxury Living 2675 44th Street SW, Suite 303 Wyoming, MI 49519 (616) 531-5243 info@pmamhq.com Why rent when you can buy? The truth is, not everyone is cut out to be a homeowner. Renting makes good economic sense while enabling a combination of a luxurious lifestyle and economic freedom. Consider that renting may be just the right choice for you! www.pmamhq.com Cost Associated With Ownership Compared to Renting a 2 Bedroom / 2 Bath Apartment This chart demonstrates the monthly savings enjoyed by renting as opposed to buying a house of comparable quality and location. Purchase CAPITAL COSTS Purchase of a 2 bedroom house of comparable quality and location Estimated Down Payment at 20% Amount to be financed Monthly Payment (assume a mortgage interest rate of 7% for 30 years) Lost earnings on down payment (assume 10 year US Treasury bond at 5% would earn $2,500/year Total Monthly Capital Costs OWNERSHIP COSTS Real estate taxes, based on 1% standard of market value, annual tax bill estimated at $3,000 Insurance - annual property coverage and liability estimated at $600 Total Monthly Ownership Costs OPERATING COSTS Pool maintenance, lawn care, snow removal, refuse Utilities — Cable, Gas, Water, Electric Repairs and Replacements Total Monthly Operating Costs Total Monthly Costs before income tax benefits Less probable income tax savings at 35% of real estate taxes and mortgage interest NET MONTHLY COST OF BUYING $150 $250 $150 $550 $2,390 - $190 $2,200 $250 $50 $300 $250,000 $50,000 $200,000 $1,332 $208 $1,540 ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ _____________________ Rent Renting Average Monthly Rent Rate for West Michigan for 2 Bed / 2 Bath $705 MONTHLY SAVINGS BY RENTING VS. BUYING 2675 - 44th Street SW, Suite 303 Wyoming MI 49519 * 616.531.5243 $1495

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