Is It Really Cheaper To Rent or Buy in Schaumburg, IL?

Recently there has been a lot of talk and articles written that it is cheaper to buy rather than rent. I decided to due an anlysis to find out if this still holds true in Schaumburg, IL. I searched the MLS and found 5 properties that were condo or townhome properties that were labeled for rent or sale.

For my assumptions I assumed financing with an FHA Mortgage that requires 3.5% down. I assumed the mortgage rate would be 4.75% on a 30 year fixed mortage. Current market conditions may make the actual interest rate lower and some of the properties may not qualify for an FHA mortgage but these figures were used to compare all properties as equal as possible.

The monthly obligations accounts for the mortgage principal and interest, monthly association fees, real estate taxes and a mortgage insurance premimum required on all FHA mortgages of 1.15%.

Here are how the numbers compare:

Street #	Street Name	Unit	Beds	Baths	Asking Price	Down Payment 3.5%	Monthly Obiligations	Rental Amount
218	Nauset	218	2	1	99900	3497	1082	1125
1023	Boston Harbor	0	2	1	119900	4197	1255	1300
1919	Prairie	107	2	2	119900	4197	1354	1095
2789	Glasgow	Z1	2	2	150000	5250	1204	1300
1416	SEVEN PINES	A1	3	2	192900	6751	1650	1600

Looking strictly at the numbers there is clearly no trend to draw a conclusion.

A couple of variables to look at when choosing a specific property are the real estate taxes and assocation fees. The real estate taxes can vary from property to property. Also the property may have lost the homeowner's exemption which acts as a discount on the property tax bill. All the properties listed above belong to a homeowner's association which charges a monthly fee for taking care of the common area. In addition, to real estate taxes, assocation fees will be different from association to association. Some may even cover utilites like the water, natural gas and garbage removal.

So if you are considering purchasing a home in Schaumburg, I think you need to take a look at all your options and understand the difference in cost between renting and owning. I always believe the best time to buy a home is when it makes sense for YOU to do it. If I can be of any help, please do not hesitate to contact me.

You can start searching for homes for sale in Schaumburg IL now

or

Start looking for homes for rent in Schaumburg

Thanks for taking the time and reading this post,

John