Renting vs. Buying…What will it cost you?

March 25, 2016 by Christina Blandi in Blog | Comments Off

Renting vs. buying in the Raleigh-Durham, NC area has lots of different variables to consider.  It typically depends on what your preferences are. Are you in a place to own a house/townhouse or simply rent? Do you understand that you’ll be incurring maintenance costs with owning a home, as opposed to the maintenance being done by the landlord for you? These are just some of the questions you need to ask yourself when you’re deciding what your living arrangement will be. Just like any city or town, there are such wide varieties of places to live, that it’s like a smorgasbord.

Let’s look at some facts to help you decide which type of living arrangement you want:

Renting:

  • Typically smaller than a home·
  • No regular maintenance·
  • Monthly rent
  • Security Deposit
  • Pets or No pets
  • One parking space
  • No taxes to pay
  • No tax write off of interest payments
  • Smaller space to clean
  • Other residents living above/below or beside you within ear shot
  • Could be less expensive to rent than own in some parts of the country
  • Limited decor choices
  • No equity buildup
 Home Owner:

  • Larger living space·
  • Regular maintenance $
  • Real Estate Market sale prices in wide ranges depending on your income level
  • Monthly Mortgage + Taxes + Insurance + Closing costs
  • Lengthy mortgage application and income & credit approval
  • LTV (loan to value %)
  • Down payment 10%-20%
  • Higher credit rating required
  • Longer work history required
  • Larger space to clean
  • Long Term asset investment
  • Asset + Liability
  • Yard maintenance
  • Can have a pet/s
  • No need to move again

In home buying vs. renting, there is the mortgage interest rates to consider.  And how long you will be paying on the mortgage.  For the National Mortgage Interest Rate, it varies from bank to bank, but to read more, visit:  http://www.bankrate.com/national-mortgage-rates/ There are many variables in renting vs. buying and as with owning a home, there are costs associated with the purchase of one.   For more information about real estate closing costs and how we can help, please contact Chris Anglin at Anglin Law Firm, 919-813-1516.

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