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Rent vs. Buy

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Kelly Kang and Shannon Levenson are real estate professionals with Paragon Real Estate Group. Kelly has experience in single-family home development, construction contracting and litigation, multi-unit investment management, and tenancy-in-common development and sales. Shannon grew up in real estate, bought his first property at age 22, and has experience in residential and commercial lending, income property analysis, green building, and home renovation. The document provides information and advice about whether to rent or buy, down payment requirements, current interest rates, and how rates affect monthly payments. Resources for additional information are also listed.

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Rent vs. Buy
Kelly Kang Realtor Kelly joined Paragon after gaining a wealth of experience in real estate and construction. Single Family Home Development Construction Contract Review & Negotiation Construction Litigation Multi-Unit Investment Management Tenancy-In-Common Development & Sales
Shannon Levenson Loan Consultant Shannon was brought up in the real estate world, bought his first property at 22 and has experience in the following: Residential Real Estate Lending Commercial Real Estate Lending Income Property Analysis Green Building and Sustainable Design Home renovation
If You’ve Ever Asked Yourself Any of These Questions…Consult a Real Estate Professional.  Is it better to Rent or Buy?  How Much is a Downpayment?  What would my Monthly Payment be if I Owned?  Is it a Good Time to Buy?  How do Interest Rates Affect Me?
Is it better to rent or buy? That depends on you.
Rent or Buy: How long will you stay?
Market Trends Since 1982
How Much is a Down Payment?  20% - YES  Conventional financing requires 20% down  10% - YES  With a 2nd loan/HELOC you can qualify for conventional financing with only 10% down  5% - YES  With private mortgage insurance you can qualify for conventional financing with only 5% down (3% in some instances)  3.5% - YES  FHA insured loans allow you to qualify for conventional financing with only 3.5% down  0% - YES  VA and other government sponsored programs allow for 100% financing or more for qualified individuals and properties
Where do I get the money for my down payment?  Liquid assets  saving, checking, investment, IRA, retirement accounts  Gift funds  friends and family can contribute money towards your down payment  Down Payment Assistance Programs  Non-profit or government programs to assist home buyers with their down payment
Is It a Good Time to Buy? Interest Rates Lower than Ever!
Is it a Good Time To Buy? Historical Rent vs. Loan Comparison
How Do Interest Rates Affect Me? Estimated Monthly Payments Assuming 20% Down Payment Loan Amount Interest Rate P&I P & I + 0.5% P & I + 1% P & I + 2% $100,000 3.500% $449 $477 $507 $568 $200,000 3.500% $898 $955 $1,013 $1,136 $300,000 3.500% $1,347 $1,432 $1,520 $1,703 $400,000 3.500% $1,796 $1,910 $2,027 $2,271 $500,000 3.750% $2,316 $2,460 $2,608 $2,918 $600,000 3.750% $2,779 $2,952 $3,130 $3,501 $700,000 4.125% $3,393 $3,599 $3,811 $4,253 $800,000 4.125% $3,877 $4,113 $4,356 $4,861 $900,000 4.125% $4,362 $4,627 $4,900 $5,468 $1,000,000 4.125% $4,846 $5,141 $5,445 $6,076
Neighborhood Trends
 Lake District  2BD/2BA/1PKG  HOA: $283  1392 s.f.  Formal Dining Rm  Near Presidio 4500 California - $769,000
 Top-floor  Fully Remodeled  Natural light  2BD/2BA  Leased Parking  HOA: $0  Hayes Valley 240 Linden St. - $779,000
Resources Buy vs. rent: These days, buying wins – CNN Money Article http://business.fiu.edu/pdf/PrintMay2011/buying-vs-rent.pdf IRS Withholding Calculator http://www.irs.gov/Individuals/IRS-Withholding-Calculator New York Times – Rent vs Buy Calculator http://www.nytimes.com/interactive/business/buy-rent- calculator.html?_r=1 Paragon Real Estate Group, Market Analytics Statistics can be misquoted, misinterpreted and misunderstood. They are not considered "facts" but more generalities and it's important to know what a statistic actually means within overall market conditions and what its limitations are. The market context behind a statistic is as important as the statistic itself. If a significant market trend is developing, it will be reflected over the longer term and across a wide variety of different statistical measures. 
Rent vs. Buy

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Rent vs. Buy

  • 2. Kelly Kang Realtor Kelly joined Paragon after gaining a wealth of experience in real estate and construction. Single Family Home Development Construction Contract Review & Negotiation Construction Litigation Multi-Unit Investment Management Tenancy-In-Common Development & Sales
  • 3. Shannon Levenson Loan Consultant Shannon was brought up in the real estate world, bought his first property at 22 and has experience in the following: Residential Real Estate Lending Commercial Real Estate Lending Income Property Analysis Green Building and Sustainable Design Home renovation
  • 4. If You’ve Ever Asked Yourself Any of These Questions…Consult a Real Estate Professional.  Is it better to Rent or Buy?  How Much is a Downpayment?  What would my Monthly Payment be if I Owned?  Is it a Good Time to Buy?  How do Interest Rates Affect Me?
  • 5. Is it better to rent or buy? That depends on you.
  • 6. Rent or Buy: How long will you stay?
  • 8. How Much is a Down Payment?  20% - YES  Conventional financing requires 20% down  10% - YES  With a 2nd loan/HELOC you can qualify for conventional financing with only 10% down  5% - YES  With private mortgage insurance you can qualify for conventional financing with only 5% down (3% in some instances)  3.5% - YES  FHA insured loans allow you to qualify for conventional financing with only 3.5% down  0% - YES  VA and other government sponsored programs allow for 100% financing or more for qualified individuals and properties
  • 9. Where do I get the money for my down payment?  Liquid assets  saving, checking, investment, IRA, retirement accounts  Gift funds  friends and family can contribute money towards your down payment  Down Payment Assistance Programs  Non-profit or government programs to assist home buyers with their down payment
  • 10. Is It a Good Time to Buy? Interest Rates Lower than Ever!
  • 11. Is it a Good Time To Buy? Historical Rent vs. Loan Comparison
  • 12. How Do Interest Rates Affect Me? Estimated Monthly Payments Assuming 20% Down Payment Loan Amount Interest Rate P&I P & I + 0.5% P & I + 1% P & I + 2% $100,000 3.500% $449 $477 $507 $568 $200,000 3.500% $898 $955 $1,013 $1,136 $300,000 3.500% $1,347 $1,432 $1,520 $1,703 $400,000 3.500% $1,796 $1,910 $2,027 $2,271 $500,000 3.750% $2,316 $2,460 $2,608 $2,918 $600,000 3.750% $2,779 $2,952 $3,130 $3,501 $700,000 4.125% $3,393 $3,599 $3,811 $4,253 $800,000 4.125% $3,877 $4,113 $4,356 $4,861 $900,000 4.125% $4,362 $4,627 $4,900 $5,468 $1,000,000 4.125% $4,846 $5,141 $5,445 $6,076
  • 14.  Lake District  2BD/2BA/1PKG  HOA: $283  1392 s.f.  Formal Dining Rm  Near Presidio 4500 California - $769,000
  • 15.  Top-floor  Fully Remodeled  Natural light  2BD/2BA  Leased Parking  HOA: $0  Hayes Valley 240 Linden St. - $779,000
  • 16. Resources Buy vs. rent: These days, buying wins – CNN Money Article http://business.fiu.edu/pdf/PrintMay2011/buying-vs-rent.pdf IRS Withholding Calculator http://www.irs.gov/Individuals/IRS-Withholding-Calculator New York Times – Rent vs Buy Calculator http://www.nytimes.com/interactive/business/buy-rent- calculator.html?_r=1 Paragon Real Estate Group, Market Analytics Statistics can be misquoted, misinterpreted and misunderstood. They are not considered "facts" but more generalities and it's important to know what a statistic actually means within overall market conditions and what its limitations are. The market context behind a statistic is as important as the statistic itself. If a significant market trend is developing, it will be reflected over the longer term and across a wide variety of different statistical measures.Â