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 326 results.
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10733 E Bramble Avenue, Mesa 85208, Signal Butte Ranch Unit 2

  • $245,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,851
  • Lot size: 6,599
  • Year built: 1998
  • MLS #: 5761188
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10142 E Isleta Avenue, Mesa 85209, Crismon Creek Village

  • $230,000
  • Bedrooms: 4, Baths: 2.5
  • Home size: 1,845
  • Lot size: 2,280
  • Year built: 2005
  • MLS #: 5755402
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11346 E Emelita Avenue, Mesa 85208, Parkwood East II

  • $249,900
  • Bedrooms: 4, Baths: 2
  • Home size: 1,945
  • Lot size: 5,750
  • Year built: 2000
  • MLS #: 5736168
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2222 S Bernard --, Mesa 85209, Augusta Ranch Parcel M-3

  • $235,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,273
  • Lot size: 4,007
  • Year built: 2001
  • MLS #: 5781700
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3005 N Comanche Drive, Chandler 85224, Parkwood Estates Unit 1

  • $222,900
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,101
  • Lot size: 12,894
  • Year built: 1982
  • MLS #: 5755971
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1305 S Roseann Street, Mesa 85209, Amador

  • $195,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,133
  • Lot size: 3,391
  • Year built: 2002
  • MLS #: 5781383
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10602 E Ironwood Lane, Mesa 85208, Oasis Park

  • $209,500
  • Bedrooms: 3, Baths: 2
  • Home size: 1,386
  • Lot size: 11,517
  • Year built: 1987
  • MLS #: 5782669
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4725 E Brown Road, Mesa 85205, Sundance Villas

  • $215,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,421
  • Lot size: 4,688
  • Year built: 1989
  • MLS #: 5763464
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2232 E Victory Drive, Tempe 85281, Victory Tract

  • $200,000
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,040
  • Lot size: 6,719
  • Year built: 1987
  • MLS #: 5782671
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2312 E Carmel Avenue, Mesa 85204, Fuller Ranch

  • $238,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,442
  • Lot size: 7,433
  • Year built: 1984
  • MLS #: 5776440
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5924 E Casper Road, Mesa 85205, Velda Rose Estates 4

  • $225,000
  • Bedrooms: 2, Baths: 2
  • Home size: 1,666
  • Lot size: 7,252
  • Year built: 1973
  • MLS #: 5781007
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8920 E Portobello Avenue, Mesa 85212, Arizona Skyline

  • $220,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,357
  • Lot size: 4,132
  • Year built: 2003
  • MLS #: 5782035
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100 W Geronimo Street, Chandler 85225, Chieftain Village

  • $175,000
  • Bedrooms: 3, Baths: 1
  • Home size: 1,235
  • Lot size: 7,396
  • Year built: 1960
  • MLS #: 5744857
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7755 E Boston Street, Mesa 85207, Cecina

  • $240,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,437
  • Lot size: 6,107
  • Year built: 2003
  • MLS #: 5781558
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3431 N Apache Circle, Chandler 85224, Parkwood Estates Unit 4

  • $242,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,336
  • Lot size: 4,003
  • Year built: 1986
  • MLS #: 5766407
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1509 W Bentley Street, Mesa 85201, Mesa Verde 2

  • $219,999
  • Bedrooms: 3, Baths: 2
  • Home size: 1,309
  • Lot size: 8,943
  • Year built: 1969
  • MLS #: 5781020
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4033 E Caballero Street, Mesa 85205, Greenfield Park Unit 2 Lot 236-400 TR A

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,438
  • Lot size: 4,795
  • Year built: 1988
  • MLS #: 5779167
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1946 S Noble --, Mesa 85209, Sierra Ranch

  • $245,000
  • Bedrooms: 2, Baths: 2
  • Home size: 1,452
  • Lot size: 7,431
  • Year built: 1999
  • MLS #: 5782567
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359 S 24th Street, Mesa 85204, Oak Park Mesa 3

  • $200,000
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,224
  • Lot size: 6,852
  • Year built: 1969
  • MLS #: 5782519
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117 N Guthrie Street, Mesa 85203, EL Dorado Estates OF Mesa Lot 1-54 & TR A

  • $230,000
  • Bedrooms: 4, Baths: 2
  • Home size: 1,894
  • Lot size: 6,251
  • Year built: 1979
  • MLS #: 5780417
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1347 S Sabino Drive, Gilbert 85296, Gardens Parcel 5 Condominium Amd

  • $217,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,228
  • Lot size: 846
  • Year built: 2006
  • MLS #: 5781069
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374 W Ranch Road, Chandler 85225, Dave Brown Unit 3 Lot 1-201

  • $235,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,441
  • Lot size: 7,471
  • Year built: 1984
  • MLS #: 5776961
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1419 S 80th Street, Mesa 85209, Harmony Manor

  • $240,000
  • Bedrooms: 4, Baths: 2
  • Home size: 1,507
  • Lot size: 6,470
  • Year built: 2002
  • MLS #: 5782510
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3005 S Mandy Circle, Mesa 85212, Arizona Skyline

  • $230,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,357
  • Lot size: 4,775
  • Year built: 2002
  • MLS #: 5777534
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14 E Mclellan Road, Mesa 85201, Pleasant Homes Sub Unit 1

  • $240,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,280
  • Lot size: 6,808
  • Year built: 1981
  • MLS #: 5781801
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1901 E 8th Street, Mesa 85203, Coury Estates Unit 2 Lot 39-70

  • $249,900
  • Bedrooms: 3, Baths: 2
  • Home size: 1,416
  • Lot size: 8,607
  • Year built: 1976
  • MLS #: 5776041
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464 W Highland Street, Chandler 85225, Dave Brown Unit 3 Lot 1-201

  • $239,900
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,288
  • Lot size: 7,771
  • Year built: 1983
  • MLS #: 5782055
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1235 W Comanche Circle, Chandler 85224, Parkwood Estates UT 4 PH 2 LT 16-219 TR A-D F-V

  • $247,500
  • Bedrooms: 3, Baths: 2
  • Home size: 1,336
  • Lot size: 4,874
  • Year built: 1986
  • MLS #: 5782400
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2207 W Bentrup Street, Chandler 85224, Knoell

  • $229,999
  • Bedrooms: 3, Baths: 1
  • Home size: 1,113
  • Lot size: 6,403
  • Year built: 1979
  • MLS #: 5749360
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833 N Bluejay Drive, Gilbert 85234, Towne Meadows Patio Homes Lot 1-171 TR A-C

  • $227,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,326
  • Lot size: 4,513
  • Year built: 1993
  • MLS #: 5767266
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1425 S Lindsay Road, Mesa 85204, Lindsay Court

  • $245,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,499
  • Lot size: 3,725
  • Year built: 1996
  • MLS #: 5782129
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10302 E Calypso Avenue, Mesa 85208, Parkwood Ranch Parcel 14

  • $249,950
  • Bedrooms: 3, Baths: 2
  • Home size: 1,518
  • Lot size: 5,500
  • Year built: 2000
  • MLS #: 5781434
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627 N Jackson Street, Chandler 85225, Arcadia Village 1

  • $250,000
  • Bedrooms: 4, Baths: 3
  • Home size: 1,648
  • Lot size: 6,512
  • Year built: 1975
  • MLS #: 5728532
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1629 W Huntington Drive, Tempe 85282, Peterson Park

  • $229,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,352
  • Lot size: 6,525
  • Year built: 1969
  • MLS #: 5761678
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1940 E Tulsa Street, Chandler 85225, Tradition East

  • $239,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,208
  • Lot size: 5,397
  • Year built: 1995
  • MLS #: 5781803
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3434 E Enid Avenue, Mesa 85204, Suntrails Lot 263-421

  • $232,000
  • Bedrooms: 3, Baths: 1.75
  • Home size: 1,472
  • Lot size: 7,328
  • Year built: 1980
  • MLS #: 5782349
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5854 E Nathan Street, Mesa 85215, Red Mountain Aviara

  • $219,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,394
  • Lot size: 4,123
  • Year built: 2000
  • MLS #: 5780124
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1088 S Storment Lane, Gilbert 85296, Cooley Station North Parcel 3

  • $250,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,588
  • Lot size: 2,925
  • Year built: 2007
  • MLS #: 5773158
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314 W Aspen Avenue, Gilbert 85233, LA Vida Serena Estates

  • $244,800
  • Bedrooms: 3, Baths: 2
  • Home size: 1,250
  • Lot size: 6,965
  • Year built: 1978
  • MLS #: 5775385
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1471 E Bellerive Drive, Chandler 85249, Springfield Block Seven

  • $229,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,100
  • Lot size: 4,750
  • Year built: 1999
  • MLS #: 5782318
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4123 E Carla Vista Drive, Gilbert 85295, Willows

  • $235,000
  • Bedrooms: 3, Baths: 2.5
  • Home size: 1,257
  • Lot size: 3,024
  • Year built: 2009
  • MLS #: 5782065
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9064 E Gable Avenue, Mesa 85209, Amador

  • $229,000
  • Bedrooms: 3, Baths: 3
  • Home size: 1,800
  • Lot size: 3,354
  • Year built: 2002
  • MLS #: 5768608
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6720 E Encanto Street, Mesa 85205, Heatherwood Village

  • $207,900
  • Bedrooms: 2, Baths: 2
  • Home size: 1,286
  • Lot size: 4,301
  • Year built: 2002
  • MLS #: 5773393
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1452 N Ananea --, Mesa 85207, Moondance Unit 5 Lts 287-290 304-385

  • $219,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,150
  • Lot size: 9,392
  • Year built: 1988
  • MLS #: 5780096
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4072 S Shady Court, Gilbert 85297, Power Ranch Neighborhood 4

  • $250,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,428
  • Lot size: 7,514
  • Year built: 2001
  • MLS #: 5768313
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1538 E Florian Circle, Mesa 85204, Mcafee Place Unit NO 1

  • $233,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,373
  • Lot size: 7,860
  • Year built: 1975
  • MLS #: 5779842
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312 N Wildrose --, Mesa 85207, Superstition View Estates

  • $232,500
  • Bedrooms: 3, Baths: 2
  • Home size: 1,343
  • Lot size: 5,280
  • Year built: 2000
  • MLS #: 5748279
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2934 E Gable Circle, Mesa 85204, Skyrun ON Southern Lot 1-93

  • $220,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,596
  • Lot size: 8,442
  • Year built: 1981
  • MLS #: 5738878
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511 N Olive Drive, Mesa 85203, Farnsworth Place

  • $225,000
  • Bedrooms: 3, Baths: 2
  • Home size: 1,248
  • Lot size: 7,619
  • Year built: 1970
  • MLS #: 5782205
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1838 E El Moro Avenue, Mesa 85204, Mesa Tierra Unit Two

  • $229,400
  • Bedrooms: 3, Baths: 2
  • Home size: 1,092
  • Lot size: 6,705
  • Year built: 1974
  • MLS #: 5778260
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ARMLS Listing Data last updated 6/20/2018 2:05 AM MST.

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