STOP Paying Rent!
Disclosure: Transcribed from video. The wording may be off.
If you are renting, now is the time to take advantage of the market, and here is why!
My name is Brandon Holley, and I am the broker at Holley Homes Realty in Austin, Texas. The market is creating a lot of uncertainty among buyers. However, builders are offering bigger incentives, and I see price reductions of up to $100K, which means you can get into a home for less. There are plenty of reasons to rent, but remember you are paying someone's mortgage, so why not make it your own? Let's look at the numbers and see why it may make sense financially for you to purchase a home.
First, if you are interested in learning how to buy a home with little to no money down, go ahead and hit like and subscribe and follow along each week as I share information about new communities and how new construction can help you.
Rent prices have continued to rise over the past 10 years. We saw a 20% increase during the pandemic, and with the population of the Austin metro projected to hit 3.34 million by 2040, rent prices may continue to increase.
For example, the average rent price in 2012 for a 3 bed 2 bath home in Austin was $1550, and now that same home is going for $2625.
During that same time, we have seen a rise in home prices, with property values hitting an all-time high in early 2022. The average 3 bedroom 2 bathroom home in Austin averages $628K. Values are recorrecting, and where this benefits you the most is in new construction, where builders offer those same homes for much less!
What do all of these numbers mean? First, with the current trends in the market, buying a property at $400,000, compared to renting a property at $2625, will break even in 3 years. And after 30 years, rent plus insurance will run you over $1.2 million with nothing to show. If you bought that home, you would have paid $798,852, saving you $412,295. Not to mention you own the property, and you make 100% of the sale price when you sell the house. Buying a home is a great investment!
What you need to know about this is rates were around 2-3% in 2021, and buyers could afford more expensive homes. Now rates have increased to 6-7%, and that same home will cost $ 100 more monthly. However, take advantage of the market when home prices are lower because historically, as interest rates decrease, home values increase.
So let's set aside interest rates, don't worry about the down payment and closing costs, and see why buying makes sense. Remember we said the average rent is $2625. Let's compare that to buying a home at $400,000. After year 3, you break even with costs, and after 30 years, you have spent over $1.2 million in rent, whereas you would have paid $799K, and you will own the home as an asset outright.
I know buying sounds difficult due to the current market, but if you have not already, watch my video, 'There are HUGE benefits to buying new construction,' where you can find out why new construction is perfect for first-time home buyers. You may think it is impossible, but don't say no until you have talked to me. Also, check out my free community guide on all new construction around central texas. I know together, we can find something that works for you!
If you have questions about purchasing a home, don't put it off until next year. Reach out to me today! I am here to answer your questions. Before you go, here is the video on Why new construction is perfect for first-time homebuyers.
Disclosure: Transcribed from video. The wording may be off.
Disclosure: Transcribed from video. The wording may be off.
Disclosure: Transcribed from video. The wording may be off.
Disclosure: Transcribed from video. The wording may be off.
Disclosure: Transcribed from video. The wording may be off.
*Disclaimer - All neighborhoods are different. Please speak to an agent to get all the facts straight. Also, equity is not guaranteed and fluctuates with the real estate market.
If you have questions about new construction, please reach out to me. The builder pays the commission, and it is my job to be knowledgeable about these communities.
Brandon Holley
Broker - Holley Homes Realty
Phone - 512.487.9242
Email - brandon@holleyhomesrealty.com
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