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 345 results.
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, Mesa 85204, Mesa Linda 2 Lots 95-110, 115-144

  • $239,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,600
  • Lot size: 12,319
  • Year built: 1960
  • MLS #: 5755029
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1804 W Summit Place, Chandler 85224, Woodglen Unit 4 Lot 1-148

  • $249,895
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,405
  • Lot size: 7,253
  • Year built: 1980
  • MLS #: 5755065
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547 N 105th Place, Mesa 85207, Superstition Heights

  • $250,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,850
  • Lot size: 5,500
  • Year built: 2002
  • MLS #: 5753980
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10430 E Abilene Avenue, Mesa 85208, Signal Butte Ranch Unit 1

  • $205,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,190
  • Lot size: 5,519
  • Year built: 1998
  • MLS #: 5698574
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3904 W Commonwealth Avenue, Chandler 85226, Brenna Park

  • $250,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,240
  • Lot size: 3,595
  • Year built: 2001
  • MLS #: 5755017
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3147 E Dolphin Avenue, Mesa 85204, Meadowgreen

  • $240,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,324
  • Lot size: 6,984
  • Year built: 1982
  • MLS #: 5743667
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11520 E Contessa Street, Mesa 85207, Meridian Hills Unit 1

  • $210,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,204
  • Lot size: 5,258
  • Year built: 1998
  • MLS #: 5749416
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1321 E Thompson Way, Chandler 85286, LA Paloma

  • $239,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,214
  • Lot size: 3,466
  • Year built: 2005
  • MLS #: 5754677
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8524 E Lakeview Avenue, Mesa 85209, Arizona Esprit 2

  • $220,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,509
  • Lot size: 5,504
  • Year built: 2001
  • MLS #: 5754983
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225 N Gaylord Circle, Mesa 85213, Mesa Villas Replat

  • $249,900
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,846
  • Lot size: 11,262
  • Year built: 1974
  • MLS #: 5754976
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6255 E Covina Street, Mesa 85205, Vineyard OF Mesa

  • $214,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,272
  • Lot size: 6,002
  • Year built: 1988
  • MLS #: 5754936
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4533 E Elena Avenue, Mesa 85206, Sunland Village 8 Lot 498-705 TR A

  • $239,900
  • Bedrooms: 2, Baths: 1.75
  • Home size: 1,580
  • Lot size: 6,766
  • Year built: 1984
  • MLS #: 5746053
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2218 E Arbor Circle, Mesa 85204, Casa DE Sol

  • $205,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,067
  • Lot size: 5,848
  • Year built: 1961
  • MLS #: 5754895
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1021 S 33rd Place, Mesa 85204, Countryside Estates

  • $239,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,273
  • Lot size: 9,068
  • Year built: 1976
  • MLS #: 5753702
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532 S 76th Place, Mesa 85208, Fountain OF The Sun Parcel 7-B UT 1415-1579 A-H

  • $215,000
  • Bedrooms: 2, Baths: 1.75
  • Home size: 1,785
  • Lot size: 6,077
  • Year built: 1989
  • MLS #: 5739994
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1327 S Rose Circle, Mesa 85204, Knoell Mesa Unit 1 Lot 1-154

  • $220,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,168
  • Lot size: 7,250
  • Year built: 1979
  • MLS #: 5720271
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6563 E Dodge Street, Mesa 85205, Dreamland Villa

  • $212,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,426
  • Lot size: 7,141
  • Year built: 1991
  • MLS #: 5740363
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1855 N Hibbert Circle, Mesa 85201, Mesa Meadows

  • $229,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,254
  • Lot size: 11,413
  • Year built: 1979
  • MLS #: 5753195
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907 S Hobson --, Mesa 85204, Holmes Addition

  • $235,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,690
  • Lot size: 8,468
  • Year built: 1971
  • MLS #: 5750648
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641 W Peralta Avenue, Mesa 85210, Dave Brown

  • $239,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,386
  • Lot size: 8,002
  • Year built: 1979
  • MLS #: 5724773
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4444 E Emelita Avenue, Mesa 85206, Sunland Village 8 Lot 498-705 TR A

  • $249,900
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,942
  • Lot size: 6,805
  • Year built: 1984
  • MLS #: 5743650
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60 E Ivy Street, Mesa 85201, Pleasant Homes Sub Unit 1

  • $210,000
  • Bedrooms: 4, Baths: 1.75
  • Home size: 1,378
  • Lot size: 6,821
  • Year built: 1973
  • MLS #: 5754820
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2436 E Peach Tree Drive, Chandler 85249, Cooper Commons 2 Parcel 5

  • $240,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,391
  • Lot size: 4,400
  • Year built: 2001
  • MLS #: 5754811
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1172 N Naples Drive, Chandler 85226, Bordeaux

  • $229,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,387
  • Lot size: 3,537
  • Year built: 1989
  • MLS #: 5754797
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1245 S Tacoma Street, Mesa 85209, Amador

  • $205,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,133
  • Lot size: 3,380
  • Year built: 2002
  • MLS #: 5753541
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733 S Allen --, Mesa 85204, Poinsettia Villa

  • $175,000
  • Bedrooms: 2, Baths: 2
  • Home size: 1,300
  • Lot size: 6,596
  • Year built: 1971
  • MLS #: 5737290
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822 Leisure World --, Mesa 85206, Leisure World

  • $169,900
  • Bedrooms: 2, Baths: 1
  • Home size: 1,194
  • Lot size: 6,082
  • Year built: 1979
  • MLS #: 5734885
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11538 E Lindner Avenue, Mesa 85209, Sunland Springs Village

  • $249,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,475
  • Lot size: 6,480
  • Year built: 2002
  • MLS #: 5748887
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482 E Harrison Street, Chandler 85225, Summerset

  • $239,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,120
  • Lot size: 6,464
  • Year built: 1996
  • MLS #: 5754635
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4604 E Catalina Avenue, Mesa 85206, Sunland Village

  • $198,000
  • Bedrooms: 2, Baths: 1.75
  • Home size: 1,530
  • Lot size: 6,387
  • Year built: 1976
  • MLS #: 5754670
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2068 Leisure World --, Mesa 85206, Leisure World Plat 18 Amd

  • $200,000
  • Bedrooms: 2, Baths: 2
  • Home size: 1,318
  • Lot size: 6,783
  • Year built: 1985
  • MLS #: 5753714
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8907 E Fountain Street, Mesa 85207, Falcon Ridge

  • $235,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,350
  • Lot size: 5,888
  • Year built: 1999
  • MLS #: 5740575
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973 E Laredo Street, Chandler 85225, Sierra Point

  • $249,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,518
  • Lot size: 5,314
  • Year built: 1997
  • MLS #: 5747045
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2175 N Holguin Way, Chandler 85225, Arborlane

  • $245,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,170
  • Lot size: 4,091
  • Year built: 2003
  • MLS #: 5754310
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628 S Temple Street, Mesa 85204, Lowell Estates

  • $229,000
  • Bedrooms: 3, Baths: 3
  • Home size: 1,425
  • Lot size: 11,291
  • Year built: 1971
  • MLS #: 5753817
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520 N 63rd Place, Mesa 85205, Vineyard OF Mesa

  • $230,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,468
  • Lot size: 6,370
  • Year built: 1990
  • MLS #: 5743863
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636 S Temple Street, Mesa 85204, Lowell Estates

  • $199,000
  • Bedrooms: 2, Baths: 2
  • Home size: 1,150
  • Lot size: 10,655
  • Year built: 1971
  • MLS #: 5753874
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11539 E Flower Circle, Mesa 85208, Silverwood

  • $224,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,824
  • Lot size: 4,031
  • Year built: 2002
  • MLS #: 5754561
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9520 E Baywood Avenue, Mesa 85208, Sienna Estates

  • $172,900
  • Bedrooms: 2, Baths: 2.5
  • Home size: 1,222
  • Lot size: 2,409
  • Year built: 2007
  • MLS #: 5754192
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239 N Morris Road, Mesa 85201, Pomeroy Place

  • $229,000
  • Bedrooms: 3, Baths: 1
  • Home size: 1,245
  • Lot size: 7,154
  • Year built: 1940
  • MLS #: 5750204
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243 S Rush Circle, Chandler 85226, Twelve Oaks 2 Lot 200-416 TR A-Z AA-CC

  • $244,750
  • Bedrooms: 3, Baths: 2
  • Home size: 1,280
  • Lot size: 5,009
  • Year built: 1988
  • MLS #: 5742864
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905 S Portland --, Mesa 85206, Sunland Village 8 Lot 498-705 TR A

  • $183,000
  • Bedrooms: 2, Baths: 1.75
  • Home size: 1,058
  • Lot size: 7,017
  • Year built: 1983
  • MLS #: 5752788
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10947 E Delta Avenue, Mesa 85208, Parkwood East

  • $220,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,236
  • Lot size: 5,500
  • Year built: 1999
  • MLS #: 5745643
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28 W Hillside Street, Mesa 85201, Center Terrace Lot 1-121 TR A

  • $215,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,555
  • Lot size: 7,501
  • Year built: 1980
  • MLS #: 5743464
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2304 W Los Arboles Place, Chandler 85224, Orangetree Lot 1-280 TR A-C

  • $210,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,172
  • Lot size: 8,059
  • Year built: 1983
  • MLS #: 5720864
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2116 E Dolphin Avenue, Mesa 85204, Fuller Ranch

  • $249,900
  • Bedrooms: 4, Baths: 2
  • Home size: 1,665
  • Lot size: 7,479
  • Year built: 1980
  • MLS #: 5738468
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9222 E Carol Avenue, Mesa 85208, Wynstone Crossings

  • $229,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,590
  • Lot size: 6,351
  • Year built: 1997
  • MLS #: 5742225
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357 W Galveston Street, Chandler 85225, Hoy Homes

  • $229,000
  • Bedrooms: 4, Baths: 2
  • Home size: 1,472
  • Lot size: 8,168
  • Year built: 1950
  • MLS #: 5754292
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1836 N Stapley Drive, Mesa 85203, Stapley Greens Units One & Two Amd

  • $240,000
  • Bedrooms: 3, Baths: 3
  • Home size: 1,855
  • Lot size: 4,452
  • Year built: 1992
  • MLS #: 5754284
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1017 S Kachina --, Mesa 85204, Mesa Tierra Unit Two

  • $199,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,249
  • Lot size: 6,918
  • Year built: 1974
  • MLS #: 5753348
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ARMLS Listing Data last updated 4/20/2018 8:01 PM MST.

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