Why it's better to buy then rent

1. Please welcome
Bob Hamrick
Chairman & CEO
Coldwell Banker Premier Realty

2. Congratulati
ons
are in order…

3. Congratulations to
COLDWELL BANKER PREMIER REALTY
for achieving
Coldwell Banker’s Chairman’s Circle Award!

4. Congratulations to
THE SAHARA OFFICE
Coldwell Banker’s NUMBER ONE OFFICE in NEVADA
in Adjusted Gross Commission Income

5. Congratulations to
HANNA DAM
Coldwell Banker’s ROOKIE OF THE YEAR in North America and in the Western Region!

6. Rent
vs
Buy

7. Rent vs Buy
WHY IS IT AN OPPORTUNITY AGAIN?
When Home Values Go Up
When Home Values Go Down
When Home Values Level Off/Slight Increase

8. Rent vs Buy
WHY IS IT AN OPPORTUNITY AGAIN?
1. People want to buy again

10. Rent vs Buy
WHY IS IT AN OPPORTUNITY AGAIN?
1. People want to buy again
2. Banks are lending again

11. At least one major bank has
concluded that lowering scores is the
way to go. Wells Fargo recently
announced reductions in
minimum acceptable scores for
conventional loans to 620 from
660. The bank earlier lowered
the acceptable score threshold
for FHA loans to 600.

12. What you may not
know…EXCEPTIONS ARE
AVAILABLE
1. 580 FICO @ 95 LTV
2. 500 FICO @ 90 LTV
3. No significant lates, savings
pattern, 24 month housing
with no lates and some other
requirements.

13. Rent vs Buy
WHY IS IT AN OPPORTUNITY AGAIN?
1. People want to buy again
2. Banks are lending again
3. Interest Rates Remain Low

14. Zillow: Buying a Home Beats Renting After 2 Years
Share on facebookShare on twitterShare on google_plusone_shareShare on linkedinMore Sharing Services260
Zillow's break-even horizon analysis came to an interesting conclusion: in half of U.S. metros, buying a home is a better financial decision than renting for buyers intending to stay in their home at
least two years. The company’s analysis includes all costs associated with buying versus renting, including upfront payments, closing costs, anticipated monthly rent and mortgage payments, taxes,
utilities, maintenance, and renovation costs.
The group also takes into account different asset streams associated with different housing situations. For example, a buyer's home equity is factored into the final figure, while a renter's ability to
invest some of the money they would have spent on a purchase is factored into the final figure for comparison.
"Rents keep rising, and mortgage interest rates remain very low, which is helping to skew the rent vs. buy decision toward buying for those who can afford it. Many renters may ask themselves why
renew a lease, when you can break even on the same home in less time in many areas," said Zillow Chief Economist Dr. Stan Humphries.
"However, some renters still have to overcome significant hurdles before they can pull the trigger on homeownership. For those renters who can't qualify for a mortgage or aren't able to save
enough for a down payment on a house, renting can be a more flexible, and often far less frustrating option," Humphries added.
Metros with some of the shortest break-even times include Riverside, California (less than 1 year); Orlando, Florida (1 year); Tampa, Florida (1.1 years); and Miami-Fort Lauderdale, Florida (1.2
years).
Large metros with the longest break-even time include Washington, D.C. (4.2 years); Boston, Massachusetts (4 years); Phoenix, Arizona (3.3 years); San Diego, California (3.2 years); and both
Minneapolis, Minnesota and Baltimore, Maryland (3.1 years).
Zillow's break-even horizon analysis came to an interesting conclusion: in half of
U.S. metros, buying a home is a better financial decision than renting for buyers
intending to stay in their home at least two years. The company’s analysis
includes all costs associated with buying versus renting, including upfront
payments, closing costs, anticipated monthly rent and mortgage payments,
taxes, utilities, maintenance, and renovation costs.
The group also takes into account different asset streams associated with
different housing situations. For example, a buyer's home equity is factored into
the final figure, while a renter's ability to invest some of the money they would
have spent on a purchase is factored into the final figure for comparison.
"Rents keep rising, and mortgage interest rates remain very low, which is helping
to skew the rent vs. buy decision toward buying for those who can afford it. Many
renters may ask themselves why renew a lease, when you can break even on the
same home in less time in many areas," said Zillow Chief Economist Dr. Stan
Humphries.

15. Rent vs Buy
WHY IS IT AN OPPORTUNITY AGAIN?
1. People want to buy again
2. Banks are lending again
3. Interest Rates Remain Low
4. Tax Deduction/Build Wealth

16. Have you ever wondered what the real differences are between renting and owning a home? The
average Americans’ motivationsrange from the financial perks of homeownership, to a desire for a
stable community, to the hope of creating a uniqueatmosphere for their family.
Not exactly sure what those financial benefits are? Takea look below:
1) Home owners build their own equity, not their landlord’s. When you make a rent
payment, you put real-estate equity in your landlord’s pocket. However, when you make a mortgage
payment, builds equity for you as well as financial stability and longevity, meaning you get to reap
the benefits someday if you decide to move.
2) Home owners with a Fixed Rate Mortgage pay the same amount per month for
their home. As a renter, you and your landlord make short term lease agreementsthat often result
in increased cost of rent when it comes time for renewal.
3) Home owners get an income tax deduction for the amount paid towards property
taxes and interest. When you rent, you still help pay for interest and property taxes, but your
landlord gets the tax break, not you.
4) Home owners tend to have approximately 30 times more in net worth than
renters.Take a look below at the findings from a 2012 study conducted by the Federal Reserve.
That’s a huge difference!
- Shea Homes

19. Rent vs Buy
TWO METHODS TO CALCULATE
1. Fusion

26. Rent vs Buy
Where do you think the major
savings comes from?
4. Tax Deductions/Build Wealth

27. $116,541.27
X.25
$29,135.32
Total Tax Savings
$36,683.35
$65,698.33

28. Rent vs Buy
TWO METHODS TO CALCULATE
1. Fusion
2. Ticor Agent

38. Rent vs Buy
Do you see the need to use this?
How are you going to use this?
Do you feel capable if you had to do one now?
THEN, BE AT LARRY’S CLASS TODAY