Choosing between buying a home and renting one is a big decision! Many will find that the costs of buying are more varied and complicated than they are for renting, which makes it hard to tell which is a better deal. To help you decide, lets compare a few of the homes currently listed on the market for sale and for rent. Similar in size, these homes are great to compare the benefits of buying a home versus renting a home in the same area.
Comparable # 1:
RENT: 7417 Collin Mckinney Parkway, McKinney is currently for lease for $2,500/month in McKinney. This home is 4 bedrooms, 3 bath at 2,652 square feet in size.
BUY: 5109 Datewood Lane, McKinney is currently listed for $345,000 which is approximately $2,382/month** in McKinney. This home is 4 bedrooms, 2 bath at 2,674 square feet in size.
Comparing the two homes above which are both located in McKinney and both offering the same space with similar square footage, you can see where in this case you would be paying less a month to buy versus renting.
Comparable # 2:
RENT: 610 Hampshire Drive, Prosper is currently for lease for $3,100/mo in Prosper. This home is 4 bedrooms, 2 bath at 2,829 square feet in size.
BUY: 1520 Brush Creek Road, Prosper is currently listed for $364,000 which is approximately $2,513/month** in Prosper. This home is 5 bedrooms, 3 bath at 3,051 square feet in size.
Comparing the two homes above which are located in Prosper and both offering similar square footage, you can see where in this case you would be paying less a month to buy vs renting.
In both cases, you save money both at the start and long term when choosing to buy versus renting. In either situation you will have initial costs, recurring costs, opportunity costs, and net proceeds. Some costs more or less depending on buying versus renting which home. The New York Times Rent vs. Buy calculator is a great way that we’ve seen for simplifying these complexities, depending on your own individual specifics. We know a calculator can only do so much as it might tell you the better long-term decision on paper-that still doesn’t mean it’s the best decision for you. Give us a call at 214-620-0411 to help run the numbers for your specific situation so YOU can make the best decision.
**Please note: Numbers used for monthly mortgage payments are ESTIMATES. These estimates were configured with a 10% down Conventional loan with a 720 credit score including PITI.