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A Madison Buyer’s Real Estate Update

Dec 15, 2007 | Real Estate Tips

Written By Heidi Rozeske

I recently put up a post about whether it was better to rent or buy here in Madison.  The Freddie Mac site I had recommended targeted both personal and financial reasons to consider one option over the other.  As a follow-up, I want to share a mortgage calculator that compares the financial impact of renting versus buying.  I found some interesting information when using the calculator with average Madison costs.  Assuming you were renting an average priced 2 bedroom apartment in Madison (data provided by ApartmentRatings.com), you would be spending $825/month.  After inputting the monthly expenditure of $825, the current average 30 year fixed interest rate of 6.1%, and a $5000 down payment, the calculator estimates that one would have the following after 30 years.

If you were spending $825/month on a mortgage:

You would own a $396,150.27 house

You would have saved $45,040.86 in income taxes on interest payments of $160,860.21.

If had rented a property for the $845:

Instead your $5000 down payment would have grown into $57,791.26

This calculator, which takes into consideration long term inflation, investment return, and tax rates, shows that Madison home ownership makes great sense.  Trulia is reporting that the average sale price for a 2 bedroom property in Madison is only $165,000 with many Madison area properties on the market for much lower.  With higher inventories and great negotiating power in Madison, now is the perfect time for buyers to step into the real estate market.  If you are considering Madison home ownership and have questions about the market or how to proceed, please feel free to contact me.

Written By Heidi Rozeske

Heidi Rozeske, the founder of Glass Slipper Homes, brings over 15 years of real estate expertise to the table. Her dedication to client satisfaction and her keen eye for detail make her an invaluable asset in your home-buying journey. Outside of real estate, Heidi enjoys staying active with pilates, indulging in creative hobbies like knitting and gardening, and sharing her thoughts through writing. Her commitment to community and personalized service sets Glass Slipper Homes apart in the Madison area.

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