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. 2021 so far has record-low inventory levels for both buying and renting so make sure you have enough time to make the move before leases are up – contact us today to talk timelines!
Comparable # 1:
RENT: 4209 Switchgrass is currently for lease for $2,990/month in Celina (Prosper ISD). This home is 4 bedrooms, 3-1/2 bath at 2,725 square feet in size.
BUY: In the same neighborhood 804 Wildflower is currently listed for $439,900 which is approximately $2,657/month** in Celina (Prosper ISD). This home is 4 bedrooms, 3 baths at 2,672 square feet in size.
Comparing the two homes above which are both located in Light Farms in Celina and both offering similar square footage, you can see where in this case you would be paying less a month to buy versus renting.
Comparable # 2:
RENT: 2805 Laurel Oak, McKinney is currently for lease for $2,400/mo in McKinney. This home is 4 bedrooms, 2-1/2 bath and 3 living spaces at 2,820 square feet in size.
BUY: In the same neighborhood, 5225 Pinewood is currently listed for $394,9990 which is approximately $2,441/month** in McKinney. This home is 4 bedrooms, 3 bath at 3,130 square feet in size.
Comparing the two homes above which are located in Heatherwood in McKinney (Prosper ISD) you would be paying about the same per month to buy or rent – if you can get the home purchased near list price! So when it’s that close you really do have to weigh your benefits and drawbacks for you.
Comparable # 3:
RENT: 816 Heron Creek Pass is currently for lease for $2,700/mo in McKinney’s Trinity Falls. This home is 4 bedrooms, 3 baths and 2 car garage at 2,634 square feet in size.
BUY: 800 Spring Falls Drive is currently listed for $399,900 which is approximately $2,330/month** in same neighborhood. This home is 3 bedrooms, 2-1/2 baths at 2,443 square feet in size.
Comparing the two homes above which are located in north McKinney off highway 75, you can see where in this case you would be paying quite a bit less a month to buy versus renting.
Remember real estate is a pathway to increasing personal wealth – either yours or a landlords! Of course in every personal situation there are many individual circumstances and life plans to consider in addition to just the monthly mortgage or leasing costs. In either situation you will have initial costs, recurring costs, opportunity costs, and net proceeds. Some costs are more or less depending on buying versus renting a 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. There are numerous benefits and drawbacks to both – that’s why it’s always a great idea to sit down with a trusted real estate advisor. Give The Marr Team 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 PITI estimates were configured with a 10% down conventional loan with a 720 credit score, no PMI, 3.0% interest on a 30-year loan with $120 monthly homeowners insurance and 2.5% unexempt taxes. These numbers vary widely based on location and many other factors.