Is Renting Actually Cheaper Than Buying in Portland Metro Right Now?

🏡 Episode Summary

If you’re renting in the Portland area, chances are you’ve asked yourself: am I just throwing money away? On the flip side, if you’ve looked at home prices lately, buying might feel completely out of reach. This episode breaks down the real numbers behind renting vs. buying—without the fluff or misleading internet advice.

Joe and Makayla walk through a realistic snapshot using Beaverton as a baseline, comparing monthly costs, upfront expenses, and long-term outcomes over a five-year period. They unpack what renting actually costs (including increases) versus what buying looks like with today’s interest rates, taxes, and insurance.

If you’re trying to decide whether to stay put, rent longer, or finally make a move, this episode gives you the clarity to make a decision based on real math, not guesswork. 

⏱️ Episode Highlights

[00:02:11] – Why “Rent vs Buy” Advice Online Is Often Misleading
Makayla explains why popular social media claims about rent being equal to a mortgage are often inaccurate—and what people should actually be looking at instead.

[00:08:20] – Portland Metro Rental Prices vs Home Prices (Real Snapshot)
A breakdown of current Beaverton numbers: ~$2,600 rent vs ~$541K median home price—and why this area is a solid benchmark for Portland suburbs.

[00:10:19] – The True Cost of Renting Over 5 Years
What renters really spend when you factor in deposits, insurance, and realistic rent increases—and why it adds up faster than most expect.

[00:13:17] – The $165K Reality of Renting
Over five years, renting can total around $165,000—with zero equity built. This is where the conversation shifts from monthly cost to long-term impact.

[00:15:08] – What It Actually Costs to Buy Right Now
Breaking down a real buying scenario: down payment, closing costs, monthly payment (~$3,822), taxes, insurance, and PMI—no sugarcoating.

[00:18:07] – How Appreciation Changes Everything
Joe explains how even conservative appreciation (3–5% annually) can lead to $86K–$173K in equity over five years—and why timing matters.

[00:21:07] – Renting vs Buying: The Real Trade-Offs
A clear side-by-side: flexibility vs stability, expense vs investment, and why renting isn’t “bad”—it just depends on your timeline.

[00:22:25] – When Buying Actually Makes Sense (And When It Doesn’t)
Key takeaway: if you’re staying under 3 years, renting may win. Longer-term? Buying often becomes the stronger financial move.

👥 Hosts

Joe Reitzug and Makayla Mast are Portland-based real estate professionals with the LivPortland team. They bring real-world experience, honest insights, and a no-pressure approach to helping buyers and sellers navigate the market. Their goal is simple: give you clear, practical guidance so you can make confident decisions in any market.

Want to know what actually makes sense for you? 

Visit LivPortland.com to explore more resources, or connect with the team for a personalized rent vs buy breakdown based on your numbers—not averages.

And if this episode helped clarify things for you, don’t forget to subscribe to Off the Record for more real-world insights into the Portland real estate market.

Thank you for listening to this episode. Stay up to date on the latest trends and insights by subscribing to our podcast and following us on social media.

For more information about buying or selling in the Portland Metro real estate market, please visit www.LivPortland.com or contact us directly.

We appreciate your feedback, so please leave a review and let us know what topics you would like to hear more about.

Transcript

00:00:08:18 - 00:00:29:11
Joe Reitzug
Welcome to Off the Record talking real estate with joe and Makayla. If you're interested in the Portland, Oregon real estate market and want the unvarnished inside scoop, you've come to the right place. Thanks for giving us a listen. Okay. Welcome, everyone. Thanks for joining the show. This is off the record with Makayla Mast.

00:00:29:13 - 00:00:30:21
Makayla Mast
And Joe Reitzug.

00:00:30:23 - 00:00:34:00
Joe Reitzug
And hello everyone. Thanks for joining. How are you today?

00:00:34:01 - 00:00:35:09
Makayla Mast
I'm doing well thank you.

00:00:35:11 - 00:00:54:01
Joe Reitzug
Good good good good. Yeah. Me too. It's a good day. Doing lots of business. We're shooting this earlier in the week than we usually do. Yeah, and earlier in the week, as always, busy. Have you noticed that Monday, Tuesday, Wednesday go by so fast because there is so much going on.

00:00:54:02 - 00:00:54:11
Makayla Mast


00:00:54:12 - 00:00:59:23
Joe Reitzug
And it's crazy that we're doing this early and that we have time to do it. But I'm super happy that we are.

00:01:00:00 - 00:01:01:22
Makayla Mast
So yeah I'm glad we're squeezing it in. Yeah.

00:01:02:03 - 00:01:03:03
Joe Reitzug
Yeah it's very.

00:01:03:05 - 00:01:13:12
Makayla Mast
Good to get it. We were just saying that we the studio set up takes some time. We're hoping one day our loyal listeners will see us in a dedicated studio space.

00:01:13:12 - 00:01:15:17
Joe Reitzug
Wow. That would be amazing.

00:01:15:19 - 00:01:17:07
Makayla Mast
And sit in my dining room table.

00:01:17:08 - 00:01:20:18
Joe Reitzug
And a dedicated hair and makeup spot. Yeah. Kayla.

00:01:20:18 - 00:01:21:09
Makayla Mast
Yeah.

00:01:21:11 - 00:01:33:17
Joe Reitzug
Yeah. For those of you out there listening. Yes, we do have this on YouTube. If you want to go to YouTube and Livportland now, Livportland and, subscribe and you'll get all of our episodes via video.

00:01:33:18 - 00:01:35:08
Makayla Mast
Yeah, I can see our faces.

00:01:35:10 - 00:01:36:07
Joe Reitzug
Look at that. Yeah.

00:01:36:07 - 00:01:38:13
Makayla Mast
See? You're laughing at me.

00:01:38:15 - 00:01:39:17
Joe Reitzug
No, I don't.

00:01:39:17 - 00:01:41:09
Makayla Mast
Like.

00:01:41:11 - 00:01:43:02
Joe Reitzug
I don't laugh.

00:01:43:04 - 00:01:44:11
Makayla Mast
It's okay, it's okay.

00:01:44:11 - 00:01:46:22
Joe Reitzug
But it's a knowing chuckle.

00:01:47:00 - 00:01:49:02
Makayla Mast
And knowing chuckle. Yeah. Silly girl.

00:01:49:04 - 00:01:50:06
Joe Reitzug


00:01:50:16 - 00:02:11:10
Makayla Mast
But I'm excited about this episode. I feel like we say this every time, but you know what? We're we're bringing you the good content. So we should be excited. We're breaking down renting versus buying in Portland. Just the the real costs. You know looking at both scenarios and what might make the most sense for you. And then of course pros and cons of each scenario as well.

00:02:11:12 - 00:02:33:04
Joe Reitzug
Yeah. I feel like this is such a personal thing. Oh yeah. It's hard to do a generalization, but I think we can do it in a way that people will kind of get the gist of all this, but in the end, being able to go to your lender and make application and see what your mortgage payments going to be, and then compare it to what renting is going to be.

00:02:33:06 - 00:02:42:08
Joe Reitzug
And knowing the long term numbers and all that, which is what we're going to go over today. I think that will really help you, you know, because you need to know your personal situation.

00:02:42:09 - 00:02:54:04
Makayla Mast
Absolutely. Yeah. And we're happy to run through it with you as well. Of course, these are going to be rough numbers just to try and appeal to most likely scenario, but there's a lot of other scenarios that we'll talk about in there as well.

00:02:54:07 - 00:03:07:20
Joe Reitzug
Outstanding. But before we do that, we have to lead off with our off the record moment.

00:03:07:22 - 00:03:08:18
Joe Reitzug
I'd like to start.

00:03:08:18 - 00:03:10:02
Makayla Mast
Okay. Let's go.

00:03:10:04 - 00:03:15:08
Joe Reitzug
I'm going to break a rule here. We have a rule on the show that it can't be about whether.

00:03:15:10 - 00:03:16:09
Makayla Mast
Yeah come on.

00:03:16:09 - 00:03:30:07
Joe Reitzug
But it's been 70 degrees here and I was out at an event yesterday, 73 degrees, watching my son play golf. It was awesome. He's he's on the golf team and is a very good golfer.

00:03:30:09 - 00:03:30:22
Makayla Mast
Very good.

00:03:30:22 - 00:03:50:09
Joe Reitzug
And so I went out there, had some shorts on but then had some sweats over the top because it was chilly in the morning. And my bug right now is that going through 3 to 4 months of the Portland winter. And then when it gets sunny thinking that you can just go ahead and take off the sweats and wear the shorts.

00:03:50:11 - 00:03:57:23
Joe Reitzug
Makayla, I was afraid that I was going to blind people from how white I was. It was embarrassing. I took them off. I looked at myself.

00:03:57:23 - 00:03:58:22
Makayla Mast
Cell and.

00:03:58:22 - 00:04:03:13
Joe Reitzug
Then I put them back on. So that's my bug. Why do we got to get so white.

00:04:03:15 - 00:04:24:12
Makayla Mast
In the winter? You know what's also not fair about that is anyone who's white and doesn't, you know, go on vacation in the winter, but they're still tan. They're fake tanning. Joe, I hate to break it to you. Like, usually I have a good layer of tan on me. Yeah, but then when you're feeling white, you're like, God, why can't everyone else be white with me?

00:04:24:12 - 00:04:40:22
Joe Reitzug
But then there's those people like my son, my youngest son, Jimmy. He has that skin tone that touches golden no matter what time of year. And then, like, we were driving home and he's like, oh, I got burned. And I'm looking at him and he's like a nice already a toasty brown.

00:04:40:22 - 00:04:41:12
Makayla Mast


00:04:41:14 - 00:04:43:12
Joe Reitzug
You got sun footage some day.

00:04:43:12 - 00:04:43:20
Makayla Mast
Yeah.

00:04:44:01 - 00:04:44:23
Joe Reitzug
And you're like tan.

00:04:45:00 - 00:04:48:19
Makayla Mast
Yeah. Oh, that is so annoying. That kid hit the gene jackpot.

00:04:48:21 - 00:04:59:06
Joe Reitzug
Not from me and not from his mom. I think it's been removed from someone else, but yeah, you did. We go on vacation and day two. He's like a bronze. And I'm like, what the heck happened?

00:04:59:06 - 00:05:00:11
Makayla Mast
Oh, I'm so jealous.

00:05:00:12 - 00:05:03:08
Joe Reitzug
I'm a hard tomato red.

00:05:03:10 - 00:05:04:23
Makayla Mast
Yeah. I'm sorry.

00:05:05:03 - 00:05:06:18
Joe Reitzug
Yeah. So that's my bug.

00:05:06:18 - 00:05:31:10
Makayla Mast
Okay, that's a fair bug. My bug is with digital invite platforms. There's, you know, there's Evite and then there's paperless, and then there's nothing else that makes sense to use. Sorry. And it's. But Evite started charging you. I am working on an event. I send out 76 invites for it, and it cost me $70 to send out the digital invites.

00:05:31:12 - 00:05:34:19
Makayla Mast
I'm like, what to send a link and to RSVP? That's crazy.

00:05:34:19 - 00:05:35:21
Joe Reitzug
But they got you, don't they?

00:05:36:00 - 00:05:47:22
Makayla Mast
They sure did. They sure got me. And they're not even the best, you know, like who's the best? No one invites just at the top. I'm like someone other companies to come in and be better. So what I'm saying should be like an.

00:05:47:22 - 00:05:49:03
Joe Reitzug
Opportunity for someone.

00:05:49:03 - 00:05:52:11
Makayla Mast
Paper invites, I know. Come on, tech companies.

00:05:52:12 - 00:05:54:08
Joe Reitzug
I'm feeling like you could make a better company with.

00:05:54:08 - 00:05:57:07
Makayla Mast
I should maybe I should try,

00:05:57:09 - 00:06:05:11
Joe Reitzug
Yeah. Okay. That's a good bug. Thank you. I'm with you on that. Not because I've felt your pain. Because I've never done that in my life.

00:06:05:11 - 00:06:06:07
Makayla Mast
But you're right.

00:06:06:10 - 00:06:07:01
Joe Reitzug
Other people.

00:06:07:01 - 00:06:07:19
Makayla Mast
Yeah, here I did.

00:06:07:19 - 00:06:15:18
Joe Reitzug
And I'm like, I've heard my wife moan and groan about all of that. So we feel your pain.

00:06:15:22 - 00:06:19:21
Makayla Mast
Thanks. Thanks. Okay. Yeah. Now getting into the episodes.

00:06:19:23 - 00:06:25:08
Joe Reitzug
Now onto the show. Renting versus buying in Portland. Yeah. The real math.

00:06:25:10 - 00:06:39:17
Makayla Mast
Real math. You know what inspired me to write this episode is because I see realtors on TikTok trying to convince you that rent is more than a mortgage would be, or equal. And that's not always the.

00:06:39:17 - 00:06:42:17
Joe Reitzug
Case, that I don't think anyone in the public really buys into.

00:06:42:17 - 00:06:46:09
Makayla Mast
That, right? It's just bad information. I want to be the trust. It seems.

00:06:46:09 - 00:06:47:08
Joe Reitzug
Self-Serving.

00:06:47:10 - 00:06:48:07
Makayla Mast
Yeah. Oh yeah.

00:06:48:12 - 00:06:49:08
Joe Reitzug
Yeah, yeah.

00:06:49:12 - 00:07:24:13
Makayla Mast
So anyways, if you are renting in Portland right now, you've probably wondered, am I throwing money away? That's a big fear. And then, you know, also if you've looked at home prices, you might be thinking, how could buying even make sense for you? So like we said, we're going to break it all down. We're going to cover a snapshot of the Portland area rents and also home prices, the real five year cost of renting, the real five year cost of buying, how appreciation and equity changed the equation, and then that side by side comparison for what is going to fit your life the best.

00:07:24:15 - 00:07:47:18
Joe Reitzug
And we will have these notes, on our website Livportland.com in the show notes. You go Livportland.com. Click on the podcast button. It'll take you to this episode. You'll see it at the top there. And you click on it. And in the notes we will have all this written out. So I know if you're listening right now, it's going to be a lot of numbers and a lot of different stuff.

00:07:47:18 - 00:07:56:04
Joe Reitzug
So if you want to see the hard numbers on this, feel free to go to our website and log in our, just pull it up to see should we get.

00:07:56:06 - 00:08:20:12
Makayla Mast
Yes, good points. So instead of doing the Portland area I did, I chose one hyperlocal area Beaverton. These numbers aren't going to vary too much between like the outer suburbs, right? So like Beaverton, Hillsboro, Tigard, Tualatin versus like Gresham, Oregon City, you know, all these numbers are going to be relatively the same. So to get good data, I just focused on Beaverton.

00:08:20:14 - 00:08:28:08
Makayla Mast
But know that things in Portland, Or in our Multnomah County might be a little bit higher than the numbers we're talking about here.

00:08:28:13 - 00:08:44:10
Joe Reitzug
Yeah, numbers will vary. Right. Yeah. There you go. But I think Beaverton is a good spot for us to focus on because it has a pretty good balance between resale and rental. So I know there's a lot of people that might desirable.

00:08:44:10 - 00:08:46:14
Makayla Mast
Yeah. Tech industries bring in a lot of.

00:08:46:17 - 00:08:47:01
Joe Reitzug
Right.

00:08:47:02 - 00:08:54:09
Makayla Mast
Residents. It's close to the Portland so but it's also Washington County which means Washington County taxes which we will get into.

00:08:54:09 - 00:09:12:10
Joe Reitzug
Yeah. So we're going to look at a three bedroom two bath right. That's the template that we're working off of here. And Beaverton Rentals currently range for three bedroom two bath between 2400 and 2800, with some higher for more square footage or prime locations or what have you.

00:09:12:12 - 00:09:38:13
Makayla Mast
Right. So from my research generally they were all in that range. So for numbers sake will say 2600. And of course we're talking about single family homes. So not apartments or townhouses right. In this scenario. And then we're going to compare that to the median sale price in Beaverton which is 541,000. Also, of course ranging higher or lower depending on square footage condition, location.

00:09:38:13 - 00:09:47:21
Makayla Mast
But if you're looking in like the Bethany or like northwest area, like Cedar Mill, know that the median sale price is going to be over 700 for that pocket.

00:09:47:21 - 00:09:49:10
Joe Reitzug
So the rents are going to be higher as well.

00:09:49:10 - 00:09:50:00
Makayla Mast
Exactly.

00:09:50:03 - 00:10:08:15
Joe Reitzug
Yeah. So if you want us to customize this side by side comparison for you, feel free to go to Livportland and just drop us a message. And we are more, you know, just let us know what you're looking for and we can get the average rent on that. And then also put together what the average cost for purchase would look like.

00:10:08:15 - 00:10:12:14
Joe Reitzug
So we can do a side by side for the numbers that you're looking for.

00:10:12:17 - 00:10:19:05
Makayla Mast
Yeah. Super easy for us to pull these numbers and we're happy to help. So okay, getting into the real math.

00:10:19:07 - 00:10:20:01
Joe Reitzug
Hit me with some real.

00:10:20:05 - 00:10:37:00
Makayla Mast
Think. Let's talk about the renting scenario first. So to keep numbers consistent of course we're gonna use that 2600 number as average monthly rent for a three bed two bath. And then just going through the costs of renting renters insurance. There's insurance. How much is that about?

00:10:37:00 - 00:10:38:21
Joe Reitzug
I'm guessing 2025 a month.

00:10:38:21 - 00:10:44:19
Makayla Mast
Yes. Yes okay. Yeah. And of course that's paid out monthly usually. But you can pay it annually.

00:10:44:21 - 00:10:47:12
Joe Reitzug
And you get a little bit of a discount. Right, right. Annually.

00:10:47:14 - 00:11:11:19
Makayla Mast
And then there's deposits for rent. So upfront costs for a home like this is going to be around $7,800. You're going to need to submit your first month, last month rent and then a deposit. Usually the deposit is the same amount as a month's rent. So that's the number that I used. But it could be lower. Maybe the landlord's feeling generous, but if you have pets, you know, of course it's going to kind of be higher.

00:11:11:21 - 00:11:25:09
Joe Reitzug
And usually for nicer homes it's going to be higher. They need to protect their investment. Yeah. So first, last and deposit is what 7800 ish. Okay. So 7800. Yeah. What about rent increases.

00:11:25:11 - 00:11:52:19
Makayla Mast
So rent increases. Are they vary a ton. But in Oregon as of this year landlords can increase rent up to 9.5% annually, which I don't know about you, but in my experience with friends and family, that's not happening. Know I mean they with your tenants. Yeah. You would lose tenants so fast and you would be way above the market rate.

00:11:53:00 - 00:12:01:14
Makayla Mast
Yeah. So just a few notes on that for your personal information. Buildings 15 years old or newer are exempt from that amount.

00:12:01:17 - 00:12:03:06
Joe Reitzug
So they can do any amount they want.

00:12:03:06 - 00:12:08:14
Makayla Mast
Yeah. Good God I know they can only increase rent once in a 12 month period.

00:12:08:18 - 00:12:11:16
Joe Reitzug
They have to give you 90 days notice right. Yeah.

00:12:11:18 - 00:12:18:04
Makayla Mast
And they can't increase the rent within the first year. So yeah. Just so you know the rules on that.

00:12:18:06 - 00:12:21:03
Joe Reitzug
It's more of a 3 to 5% increase think.

00:12:21:04 - 00:12:25:01
Makayla Mast
Yeah. Yeah I used the 3% number because it's.

00:12:25:03 - 00:12:26:06
Joe Reitzug
A little bit more realistic.

00:12:26:06 - 00:12:35:14
Makayla Mast
Yeah I think it's more realistic. And it's what you know property taxes go up about every year. So in my mind they're trying to offset that cost. And the least you know.

00:12:35:14 - 00:12:53:21
Joe Reitzug
Is to the landlords I know especially ones not using property manager management. You know every 3 or 4 years they'll go, oh, wait, that rate is way too low. And bang, they'll do the max for one time, right? Or they'll negotiate with the tenant or that type of thing. So yeah, rent increases will vary.

00:12:53:21 - 00:13:17:16
Makayla Mast
Yes, yes. So if you consider a 3% increase after five years of renting, that would be about 3014 a month. Kind of a bug about renting is you don't know when your payment is going to change. And that can be scary and frustrating. So the total amount of rent paid over five years would be roughly $165,636.

00:13:17:16 - 00:13:21:12
Joe Reitzug
I was going to guess exactly that number.

00:13:21:12 - 00:13:22:02
Makayla Mast
Oh, are you?

00:13:22:04 - 00:13:27:05
Joe Reitzug
Yeah, I was I did the math real quick and it checks out people.

00:13:27:07 - 00:13:31:21
Makayla Mast
I gotta admit, I did not do the formula on that one. I put that into.

00:13:31:21 - 00:13:33:20
Joe Reitzug
I how about just using a calculator?

00:13:33:21 - 00:13:41:13
Makayla Mast
My algebra skills. Because you'd have to do 3% increase every year times 12 for the five years. And then out of that, that's too much work.

00:13:41:13 - 00:13:43:22
Joe Reitzug
Oh girl, let me show you the code.

00:13:44:01 - 00:13:46:05
Makayla Mast
No no no no no no.

00:13:46:07 - 00:13:48:00
Joe Reitzug
She's sticking with.

00:13:48:02 - 00:13:59:01
Makayla Mast
Me. Intense. Okay. Yeah. So rent it's expensive. And unfortunately there's no investment with that amount, you are spending 100% expense.

00:13:59:06 - 00:14:09:23
Joe Reitzug
Yes. Which is the biggest downside for people I think is I'm going to pay all this money. And when I leave all I had was the time spent in the property.

00:14:10:01 - 00:14:10:11
Makayla Mast
Right.

00:14:10:12 - 00:14:13:09
Joe Reitzug
So let's do the real math for buying okay.

00:14:13:09 - 00:14:14:06
Makayla Mast
So I'm buying.

00:14:14:06 - 00:14:15:14
Joe Reitzug
It and we're going to use 541.

00:14:15:14 - 00:14:25:04
Makayla Mast
Or 541 okay. Course that can be lower or higher in the 3.5% down payment for that is 18,935.

00:14:25:04 - 00:14:26:00
Joe Reitzug
Yep. Math checks.

00:14:26:00 - 00:14:42:00
Makayla Mast
Out. Yeah. Makes it thank goodness we have you know yeah yeah. Closing costs. They're going to vary a ton but I would guess around 7800. Usually it's between 1 and 1.5% of the loan amount. I did a little high 1.5%.

00:14:42:02 - 00:15:04:04
Joe Reitzug
Yeah. And a lot of that depends on if you can get a seller to pay for some of your closing costs, which we are highly recommending right now. So yeah, that 7800 is probably about right, because I think it might be a little bit higher on 541, but the average for what someone's going to get and closing cost credit from a seller I think might even bring that down a little bit.

00:15:04:04 - 00:15:05:15
Joe Reitzug
But let's go up to 7800.

00:15:05:16 - 00:15:08:00
Makayla Mast
Okay. Thank you. Yeah. I'll work.

00:15:08:00 - 00:15:08:09
Joe Reitzug
With you on.

00:15:08:09 - 00:15:11:13
Makayla Mast
These things. I mean, I hope it's going to be lower.

00:15:11:13 - 00:15:17:22
Joe Reitzug
Like I said, that Makayla put this together, and I'm here just to pick it apart and proofread her her math.

00:15:18:02 - 00:15:20:18
Makayla Mast
I love it, right. What we need. This is honest.

00:15:20:18 - 00:15:26:15
Joe Reitzug
Content working for you people. I'm keeping this show honest for us. Proceed.

00:15:26:17 - 00:15:34:05
Makayla Mast
Thank you, thank you. Yeah. Okay. With that? This number is not as exciting, so just prepare yourselves.

00:15:34:06 - 00:15:34:22
Joe Reitzug
I'm braced.

00:15:34:22 - 00:15:39:19
Makayla Mast
It is because of the current interest rate, which is, you know.

00:15:39:21 - 00:15:40:22
Joe Reitzug
Are you on FHA on.

00:15:40:22 - 00:15:42:17
Makayla Mast
This? We're going FHA good call.

00:15:42:17 - 00:15:43:12
Joe Reitzug
3% down.

00:15:43:12 - 00:16:14:21
Makayla Mast
Yes, three and a half. But yeah, whatever. The estimated monthly payment for this home would be $3,822. Yeah. This includes though, more than just your mortgage and interest. So I included, of course, the mortgage principal at an interest rate of 5.8%, which reflects the current averages that we're seeing. Yeah, of course, if you spend the higher amount on the closing costs or we can get more from seller credit, we can help buy down the interest rate permanently for you.

00:16:15:00 - 00:16:26:11
Joe Reitzug
This is worth basically doing nothing right on that strategy, which all of the people that we're working with right now in this price range, we are getting credits from sellers. Yeah, nine times out of ten. Outstanding. It's a.

00:16:26:11 - 00:16:46:17
Makayla Mast
Beautiful thing. Yeah. And then taxes in Beaverton are going to be roughly 5000 annually. So we broke that up per month. It's rolled into your monthly payment. And then private mortgage insurance is required for FHA loans. You have to have that until you refinance out of the loan. So you're going to have that for a while. Just know that going in you could also do a conventional loan.

00:16:46:17 - 00:16:50:15
Makayla Mast
You're still going to have that private mortgage insurance if you do the 3% down.

00:16:50:19 - 00:17:04:19
Joe Reitzug
Yeah. And sometimes it's not from refinancing out. But if you're there and all of a sudden the market goes crazy and you think that you've got 10%, 20% equity, you just get an appraisal done and bingo, bingo, away goes the mortgage insurance.

00:17:04:19 - 00:17:08:11
Makayla Mast
That's true, that's true. Yeah. That's why property improvements are so important.

00:17:08:12 - 00:17:10:07
Joe Reitzug
Again, what about insurance.

00:17:10:09 - 00:17:16:14
Makayla Mast
So I let me know what you think about this number. I did about 1500 a year for insurance.

00:17:16:14 - 00:17:17:19
Joe Reitzug
I'll go with that okay.

00:17:17:19 - 00:17:19:14
Makayla Mast
It is that seem high or low to you?

00:17:19:16 - 00:17:20:18
Joe Reitzug
Maybe a little.

00:17:20:18 - 00:17:22:01
Makayla Mast
Low. Oh okay.

00:17:22:01 - 00:17:25:22
Joe Reitzug
But I'm not sure. Okay. I think it's probably a safe number for us though.

00:17:25:23 - 00:17:31:13
Makayla Mast
Okay. Okay, cool. I googled that, but I took into account what we paid. We pay.

00:17:31:15 - 00:17:32:09
Joe Reitzug
So yeah.

00:17:32:11 - 00:17:32:23
Makayla Mast
It's right around.

00:17:32:23 - 00:17:34:10
Joe Reitzug
There. Okay, cool.

00:17:34:12 - 00:17:44:07
Makayla Mast
And then of course I did a 30 year loan term, so and this is considering no HOA. So of course there's an HOA. You're gonna have a little bit more of a monthly payment. But that's what we're looking at.

00:17:44:07 - 00:17:47:18
Joe Reitzug
I think some people are looking at the adjustable rate mortgages more now too.

00:17:47:20 - 00:17:53:21
Makayla Mast
I know, and she's exciting for math. Easy math reasons. That's above my pay grade.

00:17:53:22 - 00:17:59:22
Joe Reitzug
Let's keep the math simple and go with a fixed 30 year FHA mortgage.

00:17:59:23 - 00:18:07:17
Makayla Mast
Yes. Okay. Should we talk about appreciation and love? Appreciate it. You know, it's it's why we're in this business.

00:18:07:21 - 00:18:11:21
Joe Reitzug
And interest appreciation. When you get old like me, you really get to appreciate it.

00:18:11:21 - 00:18:13:15
Makayla Mast
Thank you. Yeah, yeah.

00:18:13:17 - 00:18:14:15
Joe Reitzug
It's good coming your way.

00:18:14:15 - 00:18:18:04
Makayla Mast
It's good. Trust me. Accruing more. I rarely.

00:18:18:06 - 00:18:24:10
Joe Reitzug
Yes you are. Yes you are. Hey. So sorry.

00:18:24:10 - 00:18:27:10
Makayla Mast
One more segway from there.

00:18:27:11 - 00:18:54:08
Joe Reitzug
There isn't, there isn't. But, historical appreciation in Beaverton. 5 to 6% right now. Okay. Our current market is flat as the Earth, but, traditionally, if you look, if you're going to be into a home 5 to 7 years, I think you can probably factor in, you're going to have some really good years and years like this year that are pretty flat.

00:18:54:10 - 00:19:04:18
Joe Reitzug
And a flat market is a good for you if you're buying, because you do not have to worry about competing for the most part and paying top dollar or even paying this price for that matter.

00:19:04:19 - 00:19:06:12
Makayla Mast
So yeah.

00:19:06:14 - 00:19:08:11
Joe Reitzug
So 5.7 you said.

00:19:08:13 - 00:19:18:01
Makayla Mast
I did the math, but year over year. So in five years, of course, comparing to that same those rental numbers, your home would be worth $714,000.

00:19:18:02 - 00:19:23:17
Joe Reitzug
Math. That's about $173,000. Is that right?

00:19:23:18 - 00:19:24:05
Makayla Mast
Yes.

00:19:24:10 - 00:19:25:14
Joe Reitzug
Okay. The checks out.

00:19:25:15 - 00:19:28:13
Makayla Mast
People. Next time I'm not giving you the notes.

00:19:28:15 - 00:19:35:13
Joe Reitzug
I don't have any notes. I'm talking about your goofy. I'm just light on my feet when it comes to mathematics.

00:19:35:13 - 00:20:00:04
Makayla Mast
I'm impressed. I envy that skill. So, 173 grand in equity after five years. Not bad. Which is, you know, of course, considering the high end of the appreciation rate around here, if you want to consider the lower end or a more conservative rate of 3% year over year, your home would be worth roughly 627,000 after five years. Yeah.

00:20:00:04 - 00:20:02:09
Makayla Mast
And how much is agile fast math?

00:20:02:11 - 00:20:06:20
Joe Reitzug
I didn't look at your notes. I must say 65, 68,000.

00:20:06:21 - 00:20:11:05
Makayla Mast
Oh, 20,086.

00:20:11:07 - 00:20:23:11
Joe Reitzug
I'm just not going to say anything there. I screwed up people. Sorry. It won't happen again, but, 86 grand on 3% year over year. So, yeah, it's still pretty good. Still pretty good, I think.

00:20:23:11 - 00:20:32:09
Makayla Mast
So. And there are also tax benefits of buying a home, including your mortgage interest deduction. You know, some things to consider.

00:20:32:12 - 00:20:39:15
Joe Reitzug
And write off. So if you do a podcast, if you do a podcast, you can write off your studio, am I right?

00:20:39:15 - 00:20:40:23
Makayla Mast
If you're self-employed. Yeah.

00:20:41:03 - 00:20:49:19
Joe Reitzug
If you're self-employed. Beautiful. Consult your attorney on that. By the way our tax attorney text. So let's look at the side by side comparison where.

00:20:49:19 - 00:20:51:01
Makayla Mast
We can okay.

00:20:51:01 - 00:20:54:08
Joe Reitzug
So we really put apples to apples here okay.

00:20:54:08 - 00:21:07:00
Makayla Mast
So worth renting. Your money spent is gone. And fortunately you are subject to rent increases. And you don't have ownership or ability to modify or improve the home.

00:21:07:05 - 00:21:19:03
Joe Reitzug
Yeah. Yeah. So I mean, I think for me it comes down to, you know, how long do you think you're going to be in that home?

00:21:19:03 - 00:21:19:14
Makayla Mast
Yes.

00:21:19:14 - 00:21:35:16
Joe Reitzug
Right. If it's under three years, you know, the appreciation is not going to be there. And you maybe don't care about making the home 100% your own. Maybe renting makes good sense for that.

00:21:35:16 - 00:21:36:18
Makayla Mast
Yeah, absolutely.

00:21:36:18 - 00:21:52:17
Joe Reitzug
If you're looking long term and you want to be in a community, build in the community, get the investment advantages, get the tax advantages, anything over three years, I think buying is probably the better way to go depending on how your financial stack up.

00:21:52:19 - 00:21:55:00
Makayla Mast
Yeah, absolutely. Yeah. Well, so.

00:21:55:01 - 00:21:57:07
Joe Reitzug
I hope I didn't just kill the rest of what you had.

00:21:57:07 - 00:22:25:12
Makayla Mast
No no no. Well well I was going to say that. But yeah I think it's good to say it right now because that, you know, we don't want to sound like renting is a terrible idea because we don't believe that at all. No. From an investment standpoint, these are the things we think about. So with buying you're obviously building equity, getting appreciation gains, have a more stable monthly payment like we talked about earlier, if you refinance or get an appraisal, your monthly payment can actually be lower.

00:22:25:12 - 00:22:39:03
Makayla Mast
So you can ditch that required private mortgage insurance we were talking about. So you can even get a lower interest rate if interest rates drop. And those two things combined can save you a few hundred, maybe several hundred dollars a month.

00:22:39:03 - 00:22:54:23
Joe Reitzug
Yeah. And let's say you you had a house that had unfinished space. You could get a high lock at a pretty good rate right now. Finish out that unfinished space, have more square footage in your house, increase the value and really create something cool.

00:22:54:23 - 00:23:27:07
Makayla Mast
Yeah, absolutely. Yeah, yeah. You also have an asset to sell or borrow against the bug about buying is that maintenance costs fall on you. So you gain the ability to improve the home with that. So just things to consider. People always want a number on what maintenance or cost in a home that's nearly impossible to guesstimate. And it depends on the age of the home, I would say, you know, of course newer homes are probably going to have less bigger ticket items, but that's where an inspection is so important.

00:23:27:07 - 00:23:35:16
Makayla Mast
We're going to get you at least a lifespan on the major system structures of the home. And so you know what you're getting into before you're in it.

00:23:35:21 - 00:24:00:05
Joe Reitzug
Yeah, 100%. I just had a home inspection this morning and it's a 25 year old home. Holy smokes. The the current owner, the seller did a fantastic job of replaced the roof had the exterior fully painted. Recently redid the deck new carpets, flooring looks great. I mean, they did a.

00:24:00:10 - 00:24:01:06
Makayla Mast
Fantastic.

00:24:01:06 - 00:24:18:09
Joe Reitzug
Job. Yeah. And it's reflected in the price that they're getting right now. But our client who's buying that home is really super excited because no deferred maintenance. We just had the inspection this morning and the guy was like, whoa, this house is just as clean as a whistle right now.

00:24:18:10 - 00:24:36:17
Makayla Mast
That's awesome. I love when that happens. Yeah, it really shows on the home inspection. So we can also negotiate a seller paid home warranty for you. Usually those are between 1 and 3 years. So if any of the major systems break down or the roof even leaks within that period, you can get assistance.

00:24:36:17 - 00:24:40:03
Joe Reitzug
How much of those costing now? Is it like 575.

00:24:40:03 - 00:24:44:01
Makayla Mast
Or between 500 and like 800, depending on which plan you go with.

00:24:44:01 - 00:24:46:13
Joe Reitzug
Which plan? And does it matter? And square footage.

00:24:46:13 - 00:24:49:09
Makayla Mast
Yeah it does. Yeah. Over 2000ft² is.

00:24:49:09 - 00:24:51:18
Joe Reitzug
One. I'll be honest. I haven't done one of those in a long time.

00:24:51:18 - 00:25:11:11
Makayla Mast
Oh really? I've gotten them on for my last few buyers. My parents had a horrible experience when they bought right before I came, a broker they bought and didn't get a home warranty, and their Hvac went out that winter. They bought the home that there was some big like the toilet leak to the ceiling. There were some big ticket items.

00:25:11:11 - 00:25:29:13
Makayla Mast
So ever since then I'm like, let's just protect people as much as we can the first few years. So with that, like we've mentioned, we can run through these scenarios with you. Like we said, it doesn't take that much time. We're happy to, work through the numbers with you and what makes sense for you and your lifestyle.

00:25:29:13 - 00:25:35:09
Makayla Mast
We want you to always make a decision based on real numbers and not just fantasy land or.

00:25:35:11 - 00:25:58:12
Joe Reitzug
Yeah, numbers that mean something to you, right? That, you know, it's all fine and dandy to look at these imaginary scenarios, but it really has meaning when you can sit down with someone and say, this is what my income is, these are what my assets are, this is what I'm comfortable spending. And then look at what rent is versus what you're going to be paying with a purchase and how much money you're gonna have to spend to do that.

00:25:58:14 - 00:26:18:04
Joe Reitzug
And then do the analysis of 3 to 5% appreciation in that property over the next 5 to 7 years. Factor that in and then just compare apples to apples. We have all of that stuff in spreadsheets that we can put together for you. Super easy. Makayla I got to give you kudos. You are super good at that thing.

00:26:18:04 - 00:26:27:05
Joe Reitzug
And having those conversations with people. So highly recommend you reach out. You can go to Livportland.com or, you know, there's a ton of other ways to reach us as well.

00:26:27:05 - 00:26:41:01
Makayla Mast
So yeah, we can also book a 15 minute free buyer consultation for you where we will touch on these things. But, also just walk through the process of buying a home. If you've never done that before and answer any questions you have. Yeah.

00:26:41:03 - 00:26:42:15
Joe Reitzug
So that is rent versus.

00:26:42:15 - 00:26:57:13
Makayla Mast
Buy and let us know if this was helpful. Okay. To end this episode on a positive note. Well, every episode we like to share something that we're loving. Joe, do you want to start? It can be real estate or non-real estate related just for the listener.

00:26:57:15 - 00:26:58:15
Joe Reitzug
Know whether.

00:26:58:17 - 00:26:59:14
Makayla Mast
Or not whether.

00:26:59:17 - 00:27:16:11
Joe Reitzug
I'm whether we've already gone there today. Yeah. So, I am loving professionals in our real estate world that are just good and are on top of their game and get stuff done. It's just so nice to work with those people.

00:27:16:11 - 00:27:20:12
Makayla Mast
That's amazing. Anyone in particular that's bring any of this happiness today?

00:27:20:13 - 00:27:40:17
Joe Reitzug
Yeah, and I'm sure our industries, like everyone, you know, you get some good, you get some bad, and you know, all that sort of stuff. But I had a home inspection this morning with Nick from Oregon Northwest Home Inspections. Highly recommend those guys. By the way, Nick and Brandon, fantastic. They're outstanding. Yeah. We had a 9:00 inspection. He was there early.

00:27:40:17 - 00:28:01:00
Joe Reitzug
We were meeting a contractor, so he was like, do you mind if I get started? And we were like, but go for it. And we were out of there by just before 11 and was great with the client, answered a bunch of questions, showed her a bunch of different things, was just really, really good. And then before the show, I was in my email, we've already got the report.

00:28:01:00 - 00:28:01:21
Joe Reitzug
It's, you know.

00:28:01:22 - 00:28:02:23
Makayla Mast
Dang, that's I mean.

00:28:03:00 - 00:28:09:15
Joe Reitzug
Three and a half, four hours later and we've already got the full report and he's answering questions from the buyer, our client.

00:28:09:17 - 00:28:10:09
Makayla Mast
That's so cool.

00:28:10:09 - 00:28:20:21
Joe Reitzug
Yeah. So I'm I'm super thankful and happy to be working with Oregon Northwest home inspections. Those guys are fantastic. Like I said, it's good when you work with professionals that are on top of their game.

00:28:21:01 - 00:28:35:12
Makayla Mast
Yes, I agree, I love that we have done an episode that I love. It's one of my favorite episodes with Brandon Harley, owner of the company. Yeah. So if you want to go back and listen, it's pretty funny. He shares a lot of stories, you know, of course, crazy things can happen. Inspections.

00:28:35:12 - 00:28:39:06
Joe Reitzug
Someone's way back there. I don't know if that we have that one on our new site.

00:28:39:08 - 00:28:48:09
Makayla Mast
Oh we do, I do we. Oh yeah. Okay. Well not on our it's probably not on our website but it's on our YouTube podcast feeds like YouTube, Spotify, Apple.

00:28:48:11 - 00:28:49:02
Joe Reitzug
Yeah.

00:28:49:04 - 00:28:56:09
Makayla Mast
Anywhere you get your podcasts. But, let us know if you want us to re-interview him, because we were actually just talking about that. Yes, he's just that good.

00:28:56:10 - 00:28:57:05
Joe Reitzug
Such a nice guy.

00:28:57:05 - 00:28:57:12
Makayla Mast
Yes.

00:28:57:12 - 00:28:59:20
Joe Reitzug
He is. So what are you loving?

00:28:59:22 - 00:29:03:19
Makayla Mast
I am loving this recipe that I will share.

00:29:03:21 - 00:29:04:16
Joe Reitzug
Oh, goodness.

00:29:04:17 - 00:29:21:04
Makayla Mast
That I'm making today and I'm just so excited. It sounds not exciting, but it is because we don't. It's very labor, so I don't make that much. But it's a chicken chopped salad with oranges. It's like oranges and soy sauce and it's so tasty.

00:29:21:04 - 00:29:21:20
Joe Reitzug
Everything that's in.

00:29:21:20 - 00:29:30:12
Makayla Mast
There. Shredded cabbage. Nice. You let the cabbage marinate in the sauce in dressing. And then you do like oranges, avocado.

00:29:30:12 - 00:29:30:22
Joe Reitzug
Slivered.

00:29:30:22 - 00:29:39:02
Makayla Mast
Almonds, slivered almonds, some chicken thighs that are seared and some green onion. It's just very springy and fresh. And I'm so excited about it.

00:29:39:06 - 00:29:40:02
Joe Reitzug
I love that that's.

00:29:40:02 - 00:29:40:09
Makayla Mast
What I'm.

00:29:40:09 - 00:29:42:12
Joe Reitzug
Loving. Yeah.

00:29:42:14 - 00:29:43:14
Makayla Mast
So like oh sorry.

00:29:43:17 - 00:29:49:19
Joe Reitzug
Yeah. No, I'm loving that too. If we're introducing recipes and food, I'm bringing my A-game next.

00:29:49:23 - 00:29:52:18
Makayla Mast
Okay, okay. I love when you bring a recipe.

00:29:52:19 - 00:29:55:12
Joe Reitzug
Maybe we should have a segment on food.

00:29:55:14 - 00:29:57:09
Makayla Mast
We would excel at that.

00:29:57:11 - 00:29:59:11
Joe Reitzug
When we have the grab guide people that if you want to go.

00:29:59:13 - 00:30:00:00
Makayla Mast
Pretty much.

00:30:00:00 - 00:30:04:23
Joe Reitzug
Do you see us feeding our faces at local food trucks? That's always a good time.

00:30:04:23 - 00:30:06:16
Makayla Mast
Pretty much my best event.

00:30:06:18 - 00:30:09:23
Joe Reitzug
I love it so much. Anything we back at it.

00:30:10:01 - 00:30:18:23
Makayla Mast
We need to be soon. We've been waiting for the weather to clear up these poor food truck owners in Portland. They just. I imagine they take a hit in the winter.

00:30:18:23 - 00:30:22:04
Joe Reitzug
Oh, it's seasonal guaranteed. Yeah, it is seasonal.

00:30:22:04 - 00:30:25:04
Makayla Mast
But we will bring the business for this one summer.

00:30:25:06 - 00:30:28:09
Joe Reitzug
You guys okay? That's all we have for today. Thanks so much for listening.

00:30:28:09 - 00:30:44:00
Makayla Mast
Thanks, Makayla. Bye. Thanks, Joe. Thanks for joining us today. If you're interested in finding out more about Joe, myself or the Livportland team, you can go to Livportland.com. Thanks for giving us a listen and see you next time on the Off the Record podcast.