My own rent situation inspired me to investigate and analyze about the money I pay for rent and the mortgage I would pay in case of buying a house.
Since I start working in real estate (2001), I noticed that it is much better to buy than to rent a property because the rent that I pay goes to landlord while the mortgage payments could some day came back to my pocket. For example; if I buy a house now that the market price and interest rates are low, my monthly payment will be equal or less than the average price rent in NYC, where currently 2 bedrooms Apt average price is $1700 to $2500 depending on the area.
Buying one family house for the price of $ 350,000, your monthly payment, could be $1900. Let’s say the market goes up and your house value increased to the price of $40000 the equity is 50,000. That means that in one year you got 50,000 back to your pocket from the mortgage you had pay plus the accumulated payments that go to the principal.
Keep in mind, that this statement of buying a residential property applies only when market value is low, interest rate is low and rental value is high.
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