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 100 results.
Sort by:
Show Map

2010 E Don Carlos Avenue Tempe 85281, Lee Park 121-142

$250,000
Bedrooms: 3
Baths: 2
Sqft: 1,385
MLS: #6059027
Broker: Realty Executives
MLS Logo
ARMLS Logo

1905 S 82nd Street Mesa 85209, Casa Mia

$217,000
Bedrooms: 3
Baths: 2
Sqft: 1,026
MLS: #6061629
Broker: JMC International
MLS Logo
ARMLS Logo

160 W Saragosa Street Chandler 85225, Chieftain Village 2

$244,900
Bedrooms: 3
Baths: 1
Sqft: 1,008
MLS: #6061139
Broker: HomeSmart
MLS Logo
ARMLS Logo

143 S 111th Place Mesa 85208, Signal Butte Manor 2

$235,000
Bedrooms: 3
Baths: 2
Sqft: 1,300
MLS: #6050153
Broker: Walt Danley Christie's International Real Estate
MLS Logo
ARMLS Logo

1719 E Tara Drive Chandler 85225, Haven Lot 1-69 TR 1-10

$245,000
Bedrooms: 2
Baths: 2
Sqft: 956
MLS: #6060330
Broker: West USA Realty
MLS Logo
ARMLS Logo

451 S Hawes Road 55 Mesa 85208, Towne Square AT Desert Village

$249,000
Bedrooms: 3
Baths: 2.5
Sqft: 1,342
MLS: #6060450
Broker: Keller Williams Integrity First
MLS Logo
ARMLS Logo

1546 W 5th Street Mesa 85201, Garden Grove

$249,500
Bedrooms: 3
Baths: 2
Sqft: 1,304
MLS: #6059451
Broker: eXp Realty
MLS Logo
ARMLS Logo

817 W Watson Drive Tempe 85283, Pepperwood Unit 3 Lot 116-193

$239,900
Bedrooms: 3
Baths: 1
Sqft: 972
MLS: #6060682
Broker: My Home Group Real Estate
MLS Logo
ARMLS Logo

8019 E Frito Drive Mesa 85208, Fountain OF The Sun Parcel NO 4

$250,000
Bedrooms: 2
Baths: 2
Sqft: 1,294
MLS: #6056349
Broker: Infinity & Associates Real Estate
MLS Logo
ARMLS Logo

221 S Leandro -- Mesa 85208, Sienna Estates

$240,000
Bedrooms: 3
Baths: 2.5
Sqft: 1,436
MLS: #6043778
Broker: Cactus Golf Properties
MLS Logo
ARMLS Logo

1164 S Quail -- Mesa 85206, Sunland Village 7 Lot 1-182, 187-497 & TR A-L

$229,000
Bedrooms: 2
Baths: 2
Sqft: 1,717
MLS: #6059923
Broker: Keller Williams Realty Professional Partners
MLS Logo
ARMLS Logo

5837 E Dallas Street Mesa 85205, Dreamland Villa 10

$209,900
Bedrooms: 2
Baths: 1.75
Sqft: 1,126
MLS: #6044023
Broker: Cactus Bloom Realty
MLS Logo
ARMLS Logo

1401 E Bellerive Drive Chandler 85249, Springfield Block Seven

$249,900
Bedrooms: 2
Baths: 2
Sqft: 1,072
MLS: #6057397
Broker: eXp Realty
MLS Logo
ARMLS Logo

11530 E Covina Street Mesa 85207, Meridian Hills Unit 1

$245,000
Bedrooms: 3
Baths: 2
Sqft: 1,204
MLS: #6057919
Broker: MovingAZ Realty, L.L.C.
MLS Logo
ARMLS Logo

345 S Oregon Street Chandler 85225, none

$250,000
Bedrooms: 2
Baths: 1
Sqft: 845
MLS: #6002316
Broker: West USA Realty
MLS Logo
ARMLS Logo

751 N 57th Place Mesa 85205, Dreamland Villa 9

$218,000
Bedrooms: 2
Baths: 2
Sqft: 1,378
MLS: #6034311
Broker: Delex Realty
MLS Logo
ARMLS Logo

11343 E Quartet Avenue Mesa 85212, Mountain Ranch Unit 1

$250,000
Bedrooms: 2
Baths: 2
Sqft: 1,225
MLS: #6049486
Broker: My Home Group Real Estate
MLS Logo
ARMLS Logo

11241 E Emelita Avenue Mesa 85208, Parkwood East 2

$244,900
Bedrooms: 3
Baths: 2
Sqft: 1,196
MLS: #6060052
Broker: Delex Realty
MLS Logo
ARMLS Logo

7118 E Birchwood Avenue Mesa 85208, Esquire Villa Lots 68-144

$220,000
Bedrooms: 3
Baths: 2
Sqft: 1,425
MLS: #6055610
Broker: United Brokers Group
MLS Logo
ARMLS Logo

729 N Los Feliz Drive Chandler 85226, Copperfield Estates

$249,900
Bedrooms: 2
Baths: 2
Sqft: 1,381
MLS: #6056267
Broker: My Home Group Real Estate
MLS Logo
ARMLS Logo

1804 W Kiowa Circle Mesa 85202, Dobson Pines Lot 1-34

$245,000
Bedrooms: 2
Baths: 2
Sqft: 1,215
MLS: #6057867
Broker: Realty Executives
MLS Logo
ARMLS Logo

1056 W Frito Avenue Mesa 85210, Country Village 1

$224,900
Bedrooms: 3
Baths: 2
Sqft: 1,669
MLS: #5995192
Broker: Momentum Brokers LLC
MLS Logo
ARMLS Logo

9118 E Crescent Avenue Mesa 85208, Apache Trails

$219,900
Bedrooms: 3
Baths: 1
Sqft: 1,100
MLS: #6055488
Broker: Realty Executives
MLS Logo
ARMLS Logo

2314 W Pecos Avenue Mesa 85202, Knoell East

$249,900
Bedrooms: 3
Baths: 1
Sqft: 1,297
MLS: #6059183
Broker: HomeSmart
MLS Logo
ARMLS Logo

57 N Hunt Drive E Mesa 85203, Randall Hts

$199,700
Bedrooms: 3
Baths: 1
Sqft: 918
MLS: #6037273
Broker: My Home Group Real Estate
MLS Logo
ARMLS Logo

1055 N Recker Road 1239 Mesa 85205, Brookfield West 1 Amd

$215,000
Bedrooms: 3
Baths: 2
Sqft: 1,160
MLS: #6053966
Broker: Venture REI, LLC
MLS Logo
ARMLS Logo

5249 W Jupiter Way S Chandler 85226, Twelve Oaks 3

$249,500
Bedrooms: 2
Baths: 2
Sqft: 912
MLS: #6058169
Broker: North & Co
MLS Logo
ARMLS Logo

5135 E Evergreen Street 1210 Mesa 85205, Northpointe 1 Lot 1153-1268 1269-1272

$220,000
Bedrooms: 3
Baths: 2
Sqft: 1,116
MLS: #6037225
Broker: Cluff Real Estate LLC
MLS Logo
ARMLS Logo

1704 S 39th Street 37 Mesa 85206, Concord Place Lot 1-52 TR A-G

$239,500
Bedrooms: 2
Baths: 2
Sqft: 1,234
MLS: #6040711
Broker: Keller Williams Integrity First
MLS Logo
ARMLS Logo

6666 E El Paso Street Mesa 85205, Dreamland Villa 16

$250,000
Bedrooms: 3
Baths: 2
Sqft: 1,602
MLS: #6057063
Broker: My Home Group Real Estate
MLS Logo
ARMLS Logo

5634 E Flossmoor Avenue Mesa 85206, Arizona Valencia Corr

$249,900
Bedrooms: 3
Baths: 2
Sqft: 1,304
MLS: #6059480
Broker: eXp Realty
MLS Logo
ARMLS Logo

503 N Hunt Drive Mesa 85203, Paradise Parkway 3 Amended

$230,000
Bedrooms: 3
Baths: 2
Sqft: 1,260
MLS: #6008605
Broker: HomeSmart
MLS Logo
ARMLS Logo

784 Leisure World -- Mesa 85206, Leisure World Golden Hills Plat 9 Amd

$192,900
Bedrooms: 2
Baths: 1.5
Sqft: 1,212
MLS: #6041753
Broker: RE/MAX Classic
MLS Logo
ARMLS Logo

4634 E Enid Avenue Mesa 85206, Sunland Village 7 Lot 1-182, 187-497 & TR A-L

$225,000
Bedrooms: 2
Baths: 1.75
Sqft: 1,287
MLS: #6059086
Broker: DPR Realty LLC
MLS Logo
ARMLS Logo

6706 E Ellis Street Mesa 85205, Dreamland Villa 16

$195,000
Bedrooms: 2
Baths: 1.75
Sqft: 1,294
MLS: #6057718
Broker: eXp Realty
MLS Logo
ARMLS Logo

5428 E Cicero Street Mesa 85205, Dreamland Villa 5

$199,000
Bedrooms: 2
Baths: 1
Sqft: 884
MLS: #6045602
Broker: The Real Estate Brokers
MLS Logo
ARMLS Logo

1915 S 39th Street 116 Mesa 85206, Vista Villages

$240,000
Bedrooms: 3
Baths: 1.75
Sqft: 1,292
MLS: #6033636
Broker: Keller Williams Integrity First
MLS Logo
ARMLS Logo

1720 E Jarvis Avenue Mesa 85204, Mesa Linda

$250,000
Bedrooms: 3
Baths: 2
Sqft: 1,640
MLS: #6056389
Broker: Elite Results Realty
MLS Logo
ARMLS Logo

665 E 1st Street Mesa 85203, Mesa Villa Sub Plat 2

$225,999
Bedrooms: 3
Baths: 2
Sqft: 1,384
MLS: #5997962
Broker: Desert 2 Mountain Realty
MLS Logo
ARMLS Logo

6335 E Brown Road 1129 Mesa 85205, Brookfield West 1 Unit 2 Amd

$250,000
Bedrooms: 3
Baths: 2
Sqft: 1,325
MLS: #6036422
Broker: Premier Real Estate Opportunities
MLS Logo
ARMLS Logo

2253 E Flossmoor Circle Mesa 85204, Summer Place Phase 2 Amd Lot 93-309

$235,000
Bedrooms: 2
Baths: 2
Sqft: 1,117
MLS: #6056127
Broker: CTR Realty
MLS Logo
ARMLS Logo

2135 E Rosarita Drive Tempe 85281, Torre Molinos--Las Brisas

$192,500
Bedrooms: 3
Baths: 2.5
Sqft: 1,712
MLS: #6053518
Broker: Berkshire Hathaway HomeServices Arizona Properties
MLS Logo
ARMLS Logo

9709 E Butte Street Mesa 85207, University Manor

$240,000
Bedrooms: 3
Baths: 2
Sqft: 1,300
MLS: #6054392
Broker: Realty ONE Group
MLS Logo
ARMLS Logo

4223 E Jasper Drive Gilbert 85296, Gardens Parcel 5 Condominium Amd

$244,000
Bedrooms: 3
Baths: 2
Sqft: 1,061
MLS: #6046760
Broker: United Brokers Group
MLS Logo
ARMLS Logo

5410 E Butte Street Mesa 85205, Dreamland Villa 3 Lots 233-262

$219,000
Bedrooms: 2
Baths: 1
Sqft: 1,144
MLS: #6043760
Broker: Presidential Realty, LLC
MLS Logo
ARMLS Logo

2933 E Caballero Street Mesa 85213, Alamos East 1 Lot 1-94

$240,000
Bedrooms: 4
Baths: 2
Sqft: 1,345
MLS: #6056102
Broker: HomeSmart
MLS Logo
ARMLS Logo

8201 E 3rd Avenue Mesa 85208, Desert Sage Tr 4

$150,000
Bedrooms: 2
Baths: 1
Sqft: 804
MLS: #6056827
Broker: eXp Realty
MLS Logo
ARMLS Logo

8664 E Crescent Avenue Mesa 85208, Wynstone

$245,000
Bedrooms: 3
Baths: 2
Sqft: 1,245
MLS: #6058200
Broker: Altus Realty LLC
MLS Logo
ARMLS Logo

11257 E Camino Street Mesa 85207, Dave Brown AT Mountain & University

$225,000
Bedrooms: 3
Baths: 2
Sqft: 1,138
MLS: #6056821
Broker: Keller Williams Integrity First
MLS Logo
ARMLS Logo

5722 E Colby Street Mesa 85205, Velda Rose Estates 2

$249,999
Bedrooms: 2
Baths: 2
Sqft: 2,023
MLS: #6047270
Broker: Agave Homes & Investments
MLS Logo
ARMLS Logo
Copyright 2020 Arizona Regional Multiple Listing Service, Inc. All rights reserved.

All information should be verified by the recipient and none is guaranteed as accurate by ARMLS.

IDX Solution Provided by iFoundAgent.com

ARMLS Listing Data last updated 4/4/2020 6:45 AM MST.

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