Rent versus Buy.. It’s a Great Market Right Now for the First Time Buyer and Seasoned Investor!

Sept. 8, 2011 - PRLog -- Median rental prices have continued to increase, as limited supply and rising demand invades our market.

Benefits of buying in our current market include record low interest rates, affordable home values, tax benefits and stable monthly payments.In most cases, monthly mortgage payments are lower than renting.

Here a great example using a house that we recently sold to one of our investor clients. The home was purchased for $105,000, and rents for an easy $1200 per month. Applying 5% down payment, the seller paying 3% of the closing costs on a conventional mortgage, with a low interest rate of 4%, the principal, interest, taxes, and insurance are estimated to be approximately $785 per month. The math is simple if you are the renter, excluding maintenance, you save $4,980 per year, and that’s before you figure in the tax benefits of home ownership by deducting for interest and property taxes.

Now for the investor, let’s do the calculations to see how this investment yields initial cash on cash return of over 18%. Compare that to your rate of return at your bank and you’ll see why so many wise investors are beating the doors down to invest in this real estate market.

If property values were to increase by only 2% the first year of ownership, the growth on your investment for the first year alone is almost 27%.  Consider very moderate increases in rent, property taxes and insurance, and 2% annual appreciation for 5 years.When you sell the property, you could wind up with an outstanding Internal Rate of Return of over 19%!

Feel free to contact me for financial calculations on any property to estimate your saving by purchasing or the rate of return for an investment.

Call now …we’veset up a custom search program to notify you by email when a great opportunity arises, whether you are a first time home buyer or a seasoned investor looking for a great investment.

How long will the perfect storm last?  Take advantage now before this opportunity passes.  The first 7 callers will receive a free informative report ..“Avoid The Pitfalls of Real Estate Investing” a $99.00 value. Just call Lori Brown at Re/Max Advisors 586-725-1900, 810-543-8896 or email Lori@LoriBrownSales.com for additional information.

Thanks for reading, Lori Brown.    

CDPE-Certified Distressed Property Expert
CIAS-Certified Investment Agent Specialist

Office 586-725-1900 Email:  Lori@LoriBrownSales.com

Lori Brown specializes in assisting homeowners facing financial difficulties in Macomb and St. Clair Counties, including all areas of Southeastern Michigan.  By exploring options to avoid foreclosure through dignified solutions including the short sales process, clients receive sound real estate advice.

Support4 Sellers.com is a helpful resource that offers homeowners alternatives besides foreclosure or bankruptcy that can affect their credit for years.

We are currently offering our services in Bruce Township, Washington Township, Armada, Ray Township, Richmond, Lenox, Shelby Township, Macomb Township, Chesterfield Township, Sterling Heights, Clinton Township, and Harrison Township in Macomb County and Berlin Township, Riley Township, Wales Township, Kimball Township, Port Huron, Columbus Township, St. Clair Township, Casco Township, China & East China Townships,  Ira Township, Cottrellville Township, Clay Township and Algonac in the St. Clair County areas.

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.