Opportunities to rent a home in Mueller Austin are few and far between. I recently represented some clients in a purchase on a home here in Mueller and they need to rent it out for the time being. The day after we closed, I listed the house for lease and received an application within the first few days with a handful of backup prospects.
There are many reasons why folks like to rent in Mueller – some are waiting for the right opportunity to present itself to buy, others are renting while they build a home, many people like to give Mueller a “test drive” before committing and some folks have an uncertain near-term future, making renting a safe option.
But what about the affordability aspect?
Many folks choose to rent because it is more affordable on a month-to-month basis than buying a home. However, current mortgage rates are at historic lows. Right now you’re looking at 30-year fixed mortgage rate in the neighborhood of 4%, or even lower. This has made the monthly cost of owning a home more affordable and often-times, less expensive than renting.
Let’s look at the following example:
- $350,000 home in Mueller
- 3 beds/2.5 baths
- 1800 sq. ft.
- 20% down
- Approximate PITI (principal, interest, taxes & insurance) $1950/month.
The rent potential for this home is about $2300/month (give or take depending on a number of variables), making it less expensive to buy this home than to rent it. There’s a caveat here, as a buyer you actually have to apply and qualify for a loan. And if there’s one thing we all know, it’s that lending practices have gotten much tighter since 2008. So, just because you can afford to buy doesn’t mean that you’re qualified to buy. I’m not saying this is a bad thing – too many folks were lent money who really couldn’t afford it, making a significant contribution to the economic downturn – but it’s an interesting dichotomy. As noted in a recent article in the Wall Street Journal, “the initial building blocks for recovery are in place, but the legacy of the recession is really preventing households from taking advantage.”
Contact me if you would like to discuss the options which best suit your situation. I help people buy homes in Mueller, sell homes in Mueller and lease homes in Mueller. Hilary Herrin 913.8642, firstname.lastname@example.org