Leverette Company Newsletter

Volume 4, Number 1 • Janurary 2008

The Long View

Renting can cost more than seven times more than owning per year, according to a revised consumer education brochure from the NATIONAL ASSOCIATION OF REALTORS.

Here are some key benefits of buying:

• The Federal Reserve Board estimates that home owners have a net worth nearly 36 times more than that of renters.
• Over the past 10 years, the cost of rental housing in the United States has increased an average of 3% per year; average rents are projected to rise 4.1 % this year alone. With a 3% annual increase a current rental payment of $1,000 per month would increase every year and amount to $137,567 after 10 years, with no wealth accumulation.
• By contrast, a $210,000 home purchased today with a down payment of $10,000 and a 20 year fixed rate mortgage at 6.5% would cost a steady $1,100 per month and yield a net worth of $138,521 after 10 years, assuming an historic 4.5% annual appreciation rate.

The above information from the National Association of Realtors is about the country as a whole. It would be even more significant here in the Bay Area where rents and the annual appreciation rate are higher.

This is indeed an opportune time for buyers with good credit.

Call us and we will get you pre-approved with one of our lenders so that you can be prepared to jump into this market when you see the right thing for yourself.

Look forward to hearing from you.

Scott and Marlene Leverette