Rent or Buy Your Home…Which is Better?

Rent or buy? Gosh, isn’t that the $64 Million Dollar question? And as many things go in real estate, the answer depends on your circumstances.

Keys to Success When Buying a Home

Smart Tips for Buying Your Home

Let’s start with the current state of rentals here in Phoenix.

In the ARMLS rental database the overall average lease rate for active listings is $1,820 per month and the average sq. ft. is 1,932. For apartments, the average rent is $1,568 with an average sq. ft. of 1,102 giving us an average rent of $1.42 per sq. ft. A year ago the rate was $1.22 per sq. ft., so the rise in asking price is 16.6% in just 12 months. The number of active apartment rental listings has declined 10% from 643 to 578 since last year.

In  nutshell, rents are rising and there are fewer homes to rent. And by the way, who wants to live in an apartment? Seriously. So let’s just focus on the houses.

If you are paying $1820 a month to rent a house, you might be thinking that you could be spending that money on a mortgage payment instead. For a low down payment, FHA-type loan, that gets you about $265,000 in house spending dollars. That gets you into a pretty nice house! But is it still better to buy or rent?

Reality time…

Check out this great rent-vs-buy calculator that the NY Times put together. It factors in all the costs of both buying and renting, and analyzes the pay-off for each. Given the scenario above, spending $1800 in rent vs $1800 in mortgage (plus taxes and insurance), if you are staying put for at least 2 years, buying will probably be the better choice, financially speaking. If  you are spending $1500 in rent, but could buy an equivalent house for $225,000, in two years, you will be ahead if you buy instead of renting.

Given the current climate in Phoenix right now, if you stay at least 2-3 years at the same address, you will most often  spend less if you buy a home rather than renting an equivalent home.

Of course, there’s the matter of the down payment…for an FHA loan, you must put down at least 3.5% of the purchase price for your down payment. Add to that closing costs, and you are looking at about $13,500 in cash. Yikes!

But start thinking you will never live long enough to make this dream a reality. It is possible to negotiate with the seller to add the closing costs to the purchase price, effectively financing those closing costs. AND you might be eligible for on of the down payment assistance programs that could cover the down payment. With $1000-2000 in your pocket, you could cover the remaining costs. Now that’s a pretty sweet deal!

Check out homes in the East Valley – Mesa, Tempe, Chandler and Gilbert – that might make great alternatives to renting…

Displaying 1 - 50 of 319 results.
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113 W 8th Place, Mesa 85201, Flying Acres

  • $250,000
  • Bedrooms: 4, Baths: 2.5
  • Home size: 1,740
  • Lot size: 6,534
  • Year built: 1950
  • MLS #: 5831763
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124 N Pasadena --, Mesa 85201, Glenwood Wilbur Historic District

  • $217,000
  • Bedrooms: 2, Baths: 1
  • Home size: 813
  • Lot size: 5,770
  • Year built: 1920
  • MLS #: 5820033
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2602 E Glade Avenue, Mesa 85204, Old West Village 3

  • $244,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,356
  • Lot size: 7,532
  • Year built: 1981
  • MLS #: 5833662
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846 E Gila Lane, Chandler 85225, Stonegate Crossing Unit 3 LT 1-217 TR A

  • $235,000
  • Bedrooms: 2, Baths: 2
  • Home size: 1,105
  • Lot size: 5,724
  • Year built: 1985
  • MLS #: 5830979
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11312 E Quartet Avenue, Mesa 85212, Mountain Ranch

  • $245,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,303
  • Lot size: 5,590
  • Year built: 2001
  • MLS #: 5833329
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2520 E Boston Street, Mesa 85213, Mesa Villas Replat

  • $235,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,183
  • Lot size: 6,930
  • Year built: 1979
  • MLS #: 5833483
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1064 E Dolphin Avenue, Mesa 85204, Unk

  • $235,000
  • Bedrooms: 3, Baths: 2
  • Home size: 2,429
  • Lot size: 7,841
  • Year built: 1970
  • MLS #: 5827788
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532 N Nassau --, Mesa 85205, Greenfield Park Unit 2 Lot 236-400 TR A

  • $224,900
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,554
  • Lot size: 7,170
  • Year built: 1986
  • MLS #: 5820732
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1547 W 5th Place, Tempe 85281, Lindon Park 9

  • $230,000
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,126
  • Lot size: 6,578
  • Year built: 1962
  • MLS #: 5827962
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1428 S Hedge --, Mesa 85210, King Estates Amd

  • $249,000
  • Bedrooms: 5, Baths: 4
  • Home size: 1,572
  • Lot size: 7,073
  • Year built: 1978
  • MLS #: 5833664
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3915 E Gable Avenue, Mesa 85206, Fairfield Place 3 Lot 245-338

  • $230,000
  • Bedrooms: 4, Baths: 2
  • Home size: 1,637
  • Lot size: 9,108
  • Year built: 1985
  • MLS #: 5827459
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6300 S Windstream Place, Chandler 85249, Springfield Block Four

  • $230,000
  • Bedrooms: 2, Baths: 2
  • Home size: 1,060
  • Lot size: 6,704
  • Year built: 1998
  • MLS #: 5833612
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2235 N Mosley Drive, Chandler 85225, San Vincente

  • $247,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,588
  • Lot size: 4,002
  • Year built: 2000
  • MLS #: 5830141
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10114 E Isabella Avenue, Mesa 85209, Crismon Creek Village

  • $245,000
  • Bedrooms: 3, Baths: 3
  • Home size: 1,821
  • Lot size: 2,835
  • Year built: 2005
  • MLS #: 5831785
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640 E 1st Place, Mesa 85203, Mesa Villa Sub Plat 1

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,238
  • Lot size: 8,233
  • Year built: 1944
  • MLS #: 5801033
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2057 E Bramble Avenue, Mesa 85204, Casa DE Sol

  • $191,000
  • Bedrooms: 2, Baths: 1
  • Home size: 816
  • Lot size: 6,270
  • Year built: 1968
  • MLS #: 5825303
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4060 E Calypso Avenue, Mesa 85206, Sunland Village

  • $214,900
  • Bedrooms: 2, Baths: 1.75
  • Home size: 1,741
  • Lot size: 6,985
  • Year built: 1979
  • MLS #: 5826781
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1504 E Flossmoor Avenue, Mesa 85204, Mcafee Place

  • $215,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,600
  • Lot size: 6,669
  • Year built: 1977
  • MLS #: 5819106
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4712 E Elena Avenue, Mesa 85206, Sunland Village 7 Lot 1-182, 187-497 & TR A-L

  • $220,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,507
  • Lot size: 6,263
  • Year built: 1980
  • MLS #: 5821979
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7156 E Baywood Avenue, Mesa 85208, Esquire Villa Lots 68-144

  • $209,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,312
  • Lot size: 7,044
  • Year built: 1967
  • MLS #: 5813647
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441 S Maple Street, Mesa 85206, Windsor Shadows Lot 1-164 TR A-D

  • $250,000
  • Bedrooms: 4, Baths: 2.5
  • Home size: 1,791
  • Lot size: 3,450
  • Year built: 1988
  • MLS #: 5808051
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580 Leisure World --, Mesa 85206, Leisure World Golden Hills Plat 7 Amd

  • $189,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,251
  • Lot size: 9,332
  • Year built: 1978
  • MLS #: 5833542
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4751 E Escondido Avenue, Mesa 85206, Sunland Village 7 Lot 1-182, 187-497 & TR A-L

  • $217,000
  • Bedrooms: 2, Baths: 1.75
  • Home size: 1,580
  • Lot size: 6,422
  • Year built: 1981
  • MLS #: 5832646
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1306 W Boxelder Court, Chandler 85224, Parkwood Estates UT 4 PH 2 LT 16-219 TR A-D F-V

  • $250,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,336
  • Lot size: 4,234
  • Year built: 1986
  • MLS #: 5819082
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6054 E Albany Street, Mesa 85205, Dreamland Villa 14

  • $229,000
  • Bedrooms: 2, Baths: 2
  • Home size: 1,366
  • Lot size: 7,399
  • Year built: 1973
  • MLS #: 5831238
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716 N 95th Circle, Mesa 85207, Desert Saguaro Estates

  • $235,000
  • Bedrooms: 4, Baths: 2
  • Home size: 1,326
  • Lot size: 8,185
  • Year built: 1976
  • MLS #: 5833363
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640 W Gable Avenue, Mesa 85210, Pace East NO 2

  • $215,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,105
  • Lot size: 7,628
  • Year built: 1974
  • MLS #: 5831350
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535 N 111th Street, Mesa 85207, Grandview Manor

  • $205,000
  • Bedrooms: 2, Baths: 1
  • Home size: 1,008
  • Lot size: 8,438
  • Year built: 1980
  • MLS #: 5804552
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134 S Hassett Circle, Mesa 85208, Signal Butte Manor 2

  • $230,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,305
  • Lot size: 4,400
  • Year built: 2000
  • MLS #: 5827197
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908 W Mclellan Road, Mesa 85201, Colony BY The Greens

  • $215,000
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,469
  • Lot size: 8,703
  • Year built: 1961
  • MLS #: 5833195
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263 N Guthrie Street, Mesa 85203, Marywood Terrace

  • $206,000
  • Bedrooms: 4, Baths: 2
  • Home size: 1,088
  • Lot size: 6,395
  • Year built: 1972
  • MLS #: 5827802
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849 N Oregon Street, Chandler 85225, Thunderbird Manor 3 Lots 58-104

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,170
  • Lot size: 7,680
  • Year built: 1956
  • MLS #: 5827417
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4490 E Loma Vista Street, Gilbert 85295, Gateway Village

  • $229,000
  • Bedrooms: 2, Baths: 2
  • Home size: 1,124
  • Lot size: 4,223
  • Year built: 2004
  • MLS #: 5828152
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8037 E Inverness Avenue, Mesa 85209, Casa Mia 2B

  • $224,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,377
  • Lot size: 8,046
  • Year built: 1983
  • MLS #: 5832526
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664 W Farmdale Avenue, Mesa 85210, Powell Estates Unit 2 Lot 135-314 TR A

  • $225,000
  • Bedrooms: 2, Baths: 1.5
  • Home size: 1,377
  • Lot size: 9,326
  • Year built: 1979
  • MLS #: 5833269
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223 N Morris --, Mesa 85201, Pomeroy Place

  • $214,000
  • Bedrooms: 2, Baths: 1
  • Home size: 739
  • Lot size: 7,154
  • Year built: 1940
  • MLS #: 5826679
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3139 S Vineyard --, Mesa 85210, Dave Brown Unit 1 Lot 1-177 & TR A

  • $249,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,386
  • Lot size: 7,688
  • Year built: 1979
  • MLS #: 5832968
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1463 E Waterview Place, Chandler 85249, Springfield Block Four

  • $215,000
  • Bedrooms: 2, Baths: 2
  • Home size: 958
  • Lot size: 4,495
  • Year built: 1998
  • MLS #: 5819766
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3504 W Tyson Street, Chandler 85226, Pepperwood/Chandler

  • $239,900
  • Bedrooms: 3, Baths: 1.5
  • Home size: 1,000
  • Lot size: 7,266
  • Year built: 1981
  • MLS #: 5833293
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780 W Laredo Street, Chandler 85225, Serene Homes

  • $229,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,189
  • Lot size: 8,141
  • Year built: 1956
  • MLS #: 5829590
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1401 E Torrey Pines Lane, Chandler 85249, Springfield Block 10

  • $229,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,199
  • Lot size: 4,275
  • Year built: 2000
  • MLS #: 5819905
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9304 E Lindner Avenue, Mesa 85209, Suncrest AT Augusta Ranch

  • $239,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,380
  • Lot size: 3,750
  • Year built: 2001
  • MLS #: 5802268
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1704 S 39th Street, Mesa 85206, Concord Place Lot 1-52 TR A-G

  • $249,000
  • Bedrooms: 4, Baths: 2.5
  • Home size: 1,612
  • Lot size: 4,776
  • Year built: 1990
  • MLS #: 5801028
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459 S Roanoke --, Mesa 85206, Sunland Village 2

  • $249,100
  • Bedrooms: 2, Baths: 1.75
  • Home size: 1,890
  • Lot size: 6,396
  • Year built: 1976
  • MLS #: 5833196
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450 S Labelle --, Mesa 85208, Parkwood Ranch Parcel 16

  • $232,500
  • Bedrooms: 3, Baths: 2
  • Home size: 1,370
  • Lot size: 6,442
  • Year built: 2003
  • MLS #: 5833046
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223 N 85th Place, Mesa 85207, Knolland Estates

  • $189,900
  • Bedrooms: 3, Baths: 1
  • Home size: 1,134
  • Lot size: 9,906
  • Year built: 1969
  • MLS #: 5832439
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9136 E Auburn Street, Mesa 85207, Apache Manor

  • $237,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,266
  • Lot size: 4,400
  • Year built: 2002
  • MLS #: 5793771
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1631 S Wildrose --, Mesa 85209, Crismon Creek Village

  • $245,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,626
  • Lot size: 4,089
  • Year built: 2005
  • MLS #: 5793639
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10614 E Olla Avenue, Mesa 85212, Santa Rita Ranch Parcel 6

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,278
  • Lot size: 5,500
  • Year built: 2000
  • MLS #: 5805154
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1371 E Torrey Pines Lane, Chandler 85249, Springfield Block 10

  • $229,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,086
  • Lot size: 4,274
  • Year built: 2000
  • MLS #: 5822133
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ARMLS Listing Data last updated 10/15/2018 6:41 PM MST.

Kristin LaVanway
480-282-7464
kristin@hereinphoenix.com