Many times it makes more sense to buy a home rather than rent. When you are starting your home search you might be surprised to learn that your monthly payment can be very similar to what you are currently paying your landlord and you can get even more space and amenities.
For example, the average home price in Northern Kentucky in May was $137,167. For that price you can buy a new construction home in Florence with 3 bedrooms, 2 full and 1 half bath and a garage. Or an older brick ranch w/ a finished lower level and hardwood floors.
If you do the math, a $137,00 home with an FHA loan means a total payment with principal,interest, home owner’s insurance and taxes of approximately $1007/month. Not bad huh? I’m guessing you might be paying that to rent an apartment somewhere. Don’t forget, you also get the tax write off of your interest payments.
Now I’m not saying home ownership is for everyone. Obviously there is maintenance, yard work, and maybe even utilities that you weren’t responsible for at your apartment. But owning a home can be a great decision for so many people.
Don’t forget, if this will be your first home purchase, or if you haven’t owned a home in the past 3 years, you will qualify for the $8000 federal tax credit. And if you are a repeat buyer, you may still qualify for the $5000 KY state tax credit for new construction. Contact me for more info or if you want to see what the market can offer you.
If you’d like to see some more examples of when buying makes more sense- check out this article.