[Floridachic]

Just read that it is cheaper to buy than to rent in Henderson, NV.
One of the few cities in the US.
They considered, taxes, insurance, mortage expense, interest, dwn paymt. etc..
Interesting to say the least.

[trekwars2000]

Source?

[007 license to sell]

Originally Posted by Floridachic

Just read that it is cheaper to buy than to rent in Henderson, NV.
One of the few cities in the US.
They considered, taxes, insurance, mortage expense, interest, dwn paymt. etc..
Interesting to say the least.

What do you consider a cheap monthly payment ?
There are great deals on homes in Henderson. There is also HOA's ( home owners association fees)
And that can depend on what part of Henderson you want to live in.
There are older area's without them.

There can be lids( Land improvement district fees)sometimes called SID's Those are fees passed along to the owner of the home for any improvements made usually at the time the home was first built like sewer, roads, water, street lights ect.

You need to speak with a banker to find out what interest rate you qualify for. Down payment depends on what type of loan you get if your going FHA it is 3.5% plus you will need to have money for Closing costs and that is usually 3% of the purchase price. Plus you will need an earnest money deposit and that depends on the seller. I suggest you get pre-approved before you even look at homes to see what your qualify for so you don't waste your time looking at homes that either you don't qualify for or maybe you could get more house than you thought.

Sellers prefer to have a pre-approval letter or a proof of funds letter with an offer , other wise they won't take your offer seriously and pass on your offer.

If you go conventional you could need anywhere from 10 to 20% down depending on your credit rating. Taxes are figured off of 1.9% of the purchase price. It could be closer to 1% of the purchase price.

Insurance depends on what kind of policy you get through an insurance company and you need to speak to them as well.

Hope this is helpful

[erub]

Why Rent When You Can Buy? - BusinessWeek

This may be the link..while they have LV in the slideshow at #11, they don't mention Henderson in particular that I found. I hope that it is cheaper to buy in Henderson than rent, because I have a contigent offer on a place..the $8K tax credit is helpful

[trekwars2000]

Originally Posted by erub

Why Rent When You Can Buy? - BusinessWeek

This may be the link..while they have LV in the slideshow at #11, they don't mention Henderson in particular that I found. I hope that it is cheaper to buy in Henderson than rent, because I have a contigent offer on a place..the $8K tax credit is helpful

I just don't see how with everything factored in that it is cheaper to buy than to rent. The article would have to assume a lot of things that probably aren't hardly true for most people (like max tax bracket and they are already itemizing above the standard deduction to realize the maximum decudction for mortgage interest). Factor in common maintenance, property taxes, HOAs, mortgage payment, etc and I can't see how a house is cheaper to buy than rent.

[Floridachic]

Sorry, I should have stated that.
St. Pete Times (FL), Sunday 8/23/09 in the Your Money section.
It stated that there are some markets where the monthly cost of renting is more than buying a similar place. Before, that is, taking into consideration prp taxes,insurance, assuming a 30 yr mortgage and a 20% dwn/paymnt. The Times used ZipRealty as their source.
They cited: Homestead (FL), Kissimmee (FL), Queen Creek, AZ, Antioch, CA and of course Henderson , Nevada

[olecapt]

Originally Posted by trekwars2000

I just don't see how with everything factored in that it is cheaper to buy than to rent. The article would have to assume a lot of things that probably aren't hardly true for most people (like max tax bracket and they are already itemizing above the standard deduction to realize the maximum decudction for mortgage interest). Factor in common maintenance, property taxes, HOAs, mortgage payment, etc and I can't see how a house is cheaper to buy than rent.

It is a reasonably simple calculation. I would not even get into the mortgage deductons. Just do it on cash flow. Much of the NW and lots of other places can actually be bought for a few hundred dollars a month less than they will bring in as rent. Called positive cash flow.

All you do is add up mortgage, insurance, taxes, expenses and compare it to the rent. Simple as that. Much of the harder hit areas of Las Vegas will show a few hundred dollar advantage. Look for places selling for less than $70 per SF. Around $80 or so you break even.

Note tht the owner occupant is advantaged over the investor. You need no reserve for vacancies nor do you need a property manager.

[trekwars2000]

Originally Posted by olecapt

It is a reasonably simple calculation. I would not even get into the mortgage deductons. Just do it on cash flow. Much of the NW and lots of other places can actually be bought for a few hundred dollars a month less than they will bring in as rent. Called positive cash flow.

All you do is add up mortgage, insurance, taxes, expenses and compare it to the rent. Simple as that. Much of the harder hit areas of Las Vegas will show a few hundred dollar advantage. Look for places selling for less than $70 per SF. Around $80 or so you break even.

Note that the owner occupant is advantaged over the investor. You need no reserve for vacancies nor do you need a property manager.

But the NW is not Henderson as the article states. What is the rent for a 2000 sqft house in 89014 or 89052 vs the cost? I'd think the houses are still selling for $225-250K. That would put the Mortgage (assuming 0% down) at like $1500 per month before taxes, insurance, upkeep, etc which would probably push that number much more towards $2000+. Those same places rent for like $1400-1800 no?

Now, don't get me wrong, nothing can factor out the fact that a renter will never own and the person with the mortgage will eventually own the house outright. I just can't see how Henderson/green valley (at $120/sf) can fall into the above category.

[olecapt]

Originally Posted by trekwars2000

But the NW is not Henderson as the article states. What is the rent for a 2000 sqft house in 89014 or 89052 vs the cost? I'd think the houses are still selling for $225-250K. That would put the Mortgage (assuming 0% down) at like $1500 per month before taxes, insurance, upkeep, etc which would probably push that number much more towards $2000+. Those same places rent for like $1400-1800 no?

Now, don't get me wrong, nothing can factor out the fact that a renter will never own and the person with the mortgage will eventually own the house outright. I just can't see how Henderson/green valley (at $120/sf) can fall into the above category.

There are 1000 homes in Henderson under $90 per SF. 600 under $80 per SF.

Henderson is not all Green Valley Ranch.

My comments were more generic however. I would hunt where the rabbits live.

[trekwars2000]

Originally Posted by olecapt

There are 1000 homes in Henderson under $90 per SF. 600 under $80 per SF.

Henderson is not all Green Valley Ranch.

My comments were more generic however. I would hunt where the rabbits live.

Are we talking Henderson Water street or anything more than 2 miles west of there?