Monthly Archives: May 2013

Home Rental or Home Ownership? What’s Best for Your Family?

Making the decision between renting your home and buying is much more than simply comparing a mortgage payment with monthly rent. There are many cost advantages to home ownership that create longterm financial savings over renting. How do you know what’s best for you and your family? Using the Guaranteed Rate Rent Versus Own Calculator with LW Reedy’s Home Search, you can compare renting a specific property with purchasing another.

Beyond the lifestyle benefits of setting down roots for your family, the stability of knowing there is no lease to be renewed, and being able to make changes to your home without checking with a landlord, there are financial benefits to consider, including:

  • Building equity. While home values decreased recently, historically, home values increase over time. While you’re paying off your mortgage, the value of your home is increasing, and your wealth is building.
  • Saving on federal taxes. Currently, you can deduct your mortgage interest from your gross income when calculating your taxes.
  • Budget stability. When you rent, you sign a new lease with your landlord each year, typically facing annual increases in your rent. With a fixed mortgage, your payment stays the same over the life of the loan, allowing for a more stable and predictable budget.

For some families, the benefits of renting outweigh the benefits of home ownership.

  • Maintenance costs. When you rent, your landlord covers the cost of broken appliances, roof repair, etc. With homeownership, maintenance costs are your responsibility.
  • Risk. While historically home values increase over time, there are periods, as experienced recently, when home values decrease for a period. If you have to move when the value is low, you can lose money on your home.
  • Less flexibility. If you need to move frequently and with short notice, consider if you have the financial stability and support to manage the frequent buying and selling of homes.

Understanding the benefits of homeownership is one thing. Seeing the numbers makes it clear.

  1. Use LW Reedy’s Home Search to find your dream home and a comparable rental property.
  2. Use Guaranteed Rate’s Rent Versus Own Calculator to compare costs. The listing sheet, which you can get at LW Reedy at 101 N. York in Elmhurst, will tell you the property taxes for the home you are considering. For home insurance estimates, call your favorite insurance agent.

Now let’s consider an example created using the calculator. This house at 689 S Hillside in Elmhurst in the Lincoln Elementary School district is currently listed for $293,900. A similar rental property at 715 Saylor Avenue, in the same school district, recently rented for $1600 a month. Using Guaranteed Rate’s Mortgage Calculator and assuming an FHA loan with a down payment of 3.5%, we learn that you will save $40,694 over a 7-year period of ownership.

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For another example, consider this home at 870 S Hawthorne Avenue in the Jackson Elementary School district listing for $325,000 and a similar home in the same school district at 950 Bryan St that recently rented for $1900 a month. With the same down payment assumptions, the rent-versus-loan calculator tells us that you will save $45,616 over a 7-year period of ownership by owning over renting.

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Considering these cost savings along with benefits of stable monthly payments, setting down roots for your family, and exerting control over your living space, ownership is the best bet for most families. Managing these calculations can be complicated. To walk through the numbers, contact our friend CJ Poloucek at Guaranteed Rate. To compare two properties, check with your favorite agent at LW Reedy.
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Rates Thursday

Guaranteed Rate is offering a 15 Year Fixed Mortgage Rate of 2.875% and a 30 Year Fixed Mortgage Rate of 3.625%. Take advantage of the historic mortgage rates, they will not last! According to the KCM Blog, this upcoming year rates will increase minimally 4%.

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Elmhurst-Area Summer Camps and Programs for Kids

Worried about the kids sitting in front of their electronic games all summer? Elmhurst and the surrounding areas offer many unique and fun options for summer programs for kids to get them away from the screens and into the real world!

Academics/Leadership

Art

Creatures and Nature

Dance

LEGOs!

Music

  • Elmhurst College, including Jazz Combo Camp for middle school and high school students and Acoustic Guitar Camp for high school students
  • Music Together , music camps for preschoolers
  • School of Rock, from Intro to Rock to Songwriting and Recording

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Sports

Theater/Movie-Making

Multiple Programs – sports, art, music, dance, preschool, and more.

From butterflies to Legos and making movies to spiking the volleyball, Elmhurst and the surrounding areas have plenty of activities to keep kids of all ages engaged, learning and growing.

LW Reedy knows Elmhurst. Follow our blog (at the top of the page) so we can share our knowledge with you. Visit LW Reedy online or in person at 101 N York for your real estate needs and community links.

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MLS Monday

Closed sales in Illinois this past year have amounted to 101,668. This is a percentage of twenty eight percent. Sales in Illinois have continued to rise, let’s keep getting inventory so these great sales don’t plateau!

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Rates Thursday

Rates for a 30 Year Mortgage through Guaranteed Rate are staying at 3.625% . The LA Times reports, rates have been steadily increasing this year and will continue to do so.

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The View from 101 York

LW Reedy has been serving the Elmhurst community and surrounding areas since 1951. As the largest locally-owned real estate agency in Elmhurst, we have a passion for local news and events. Here’s our view of the community for this month, from our perch at 101 York in the heart of downtown Elmhurst.

Spring Cleaning in Elmhurst

Now that the city has completed special flood pick-ups, it’s time to get ready (again) for Spring Clean-Up. Have your items at your curb the week of June 10 on your regular garbage day. Check the city website for acceptable items and other details.

Flood Recovery

More on that topic we all want to forget – it’s flood news. It’s time apply for FEMA assistance. If your home was damaged in the flood, FEMA may be able to help.

Another way to reduce the financial impact of the flood is to apply for assessment relief. In Elmhurst, check the York Assessor Office website or call Addison Township Assessor’s office at (630) 530-8161 for deadlines and details.

Getting ready for summer fun?

Elmhurst Park District is offering discounts for summer pool passes through May 24. These passes allow summer-long access to both of Elmhurst’s outdoor pools AND our spray ground at The Hub.

Speaking of the pool, do you have a teenager in need of a summer job? The Elmhurst Park District is looking for lifeguards!

For more summer fun for kids, check out our summer camp blog next week. Subscribe to this blog to be notified when it posts. Email debcasey@mac.com if you know of a camp you think should be included.

Remember to sign up for Dig Into Reading, the Elmhurst Public Library’s summer reading program for kids. The program kicks off on Saturday, June 1 with face painting and more fun! Adults can join in the fun, too, with the library’s adult summer reading program. Check your school’s website for summer reading lists.

Are you ready to rock?

School of Rock Elmhurst presents Indie Rock on Saturday, May 18 at 2pm followed by Best of Hard Rock at 4:30pm at Fitz’s Spare Keys. All ages. Free.

Elmhurst College hosts guitar ensembles Sunday, May 19 at 7:30pm. Buik Recital Hall.

Music at the Gazebo starts June 6 on Spring Road in Elmhurst.

Join Simone and the Elmhurst College Jazz Band for the June jazz event. June 15, 6:30pm, College Mall. Bring blankets and a picnic for a fun musical evening for the family. It’s like Ravinia without the travel and the parking hassle!

Join the Elmhurst Park District Battle of the Bands. Saturday, June 22 at 3pm. Addison Street Parking lot.

Are you ready to roll?

The Jaycees Charity Carnival opens Thursday, June 13 at 6pm. Visit the Special Kids Carnival Day website for details about special needs children and adults, along with their families, day to ride free.

Check out the Pet and Bike Parade  on Spring Roadin Elmhurst. Saturday May 18 at 1pm from Ahlgrims funeral to the Silverado. Bike decorating, pet tricks, and pet portraits start at 11:30am.

Museum Day

Take a free trolly to visit all 4 Elmhurst museums (Elmhurst Art MuseumElmhurst Historical MuseumLizzadro Museum of Lapidary Art and Theatre Historical Society of America) on Elmhurst Museum Day. Sunday, May 19, 1 to 5pm. Free admission.

Share Your News!

Have some events you’d like listed in next month’s View from 101 York? Contact debcasey@mac.com with details.

Subscribe to be sure not to miss news on Elmhurst and surrounding suburbs! Check out LW Reedy’s Community Links for Elmhurst and surrounding area websites.

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MLS Monday

Under contract homes in Elmhurst are steadily rising. The figures from May 2012-present are as follows: $264,899 and lower, 14% rise, $264,899-$359,899, 31.9% rise, $359,899- $589,999, 34.2% rise, and 599,999 and above, 20.9% rise.

What does it all mean? Every price range in the Elmhurst rise is experiencing a rise in contracts. This will continue for the foreseeable future.

 

 

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Rates Thursday

Take advantage of the market today! Guaranteed Rate is offering a 30 Year Fixed Mortgage Rate of 3.500%.

 

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