What great questions and ones that were tackled by SmartAsset.com earlier this month.
To answer these questions you need to look at the different costs associated with renting versus buying. When you are renting there are two main expenses: the rent payment and, if you are responsible, renter’s insurance. In the case of buying a home there are many more expenses. Some of the costs are upfront expenses such as down payment and closing costs. Other expenses are on the back end when you sell the property, such as closing costs and commissions to sell. The difference lies in the accumulated appreciation of the property and the tax savings that home ownership allows.
The Baltimore Metro area offers a great value when buying a home. On average, a person would need to own a home for 3.6 years to recoup the outlay to purchase and sell that home. Compare that to some of the West Coast cities - Seattle (14.9 years), San Francisco (14.6 years), Los Angeles (8.8 years), and hold onto your seats, New York at 18.3 years to recover the upfront and back end expenses. Our neighbors to the south in the Nation's Capital must wait 6.5 years. That's almost double the time in our area!
Let’s look at a real world example from the perspective of a first time home buyer deciding whether to buy or rent a townhouse in the Laurel Woods Community in Harford County. In the past 2 years the highest priced home in that neighborhood sold for $205,000. Over that same period of time the median rent in the community was $1,400 per month. According to the SmartAsset.com Affordability Calculator, our first time home buyer would need to live there for 3 years to breakeven. Our first time home buyer should rent if he plans to live in the house less than 3 years.
So, what does all of this mean? We live in a very affordable market. If you are planning on staying put for a few years, it makes sense to buy rather than rent. The rent in and around the Baltimore Metro area is ridiculously high. If you are an investor, it is wise to buy rental properties and hold onto them for 3 years or longer.
Every buyer has a unique situation. If you are interested in discussing the affordability of a particular property, buying versus renting, or purchasing an investment property, please call or text me at 410.920.4760 or drop me a line at email@example.com
Author:Alexander Necker Phone: 410-920-4760 Dated: May 26th 2016 Views: 257 About Alexander: ...
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About Alexander Necker, Real Estate Sales Consultant
I specialize in selling the Baltimore Metropolitan’s Premier Homes.
I am an Eagle Scout. I mention this because the process of becoming an Eagle Scout provided me with the foundation by which I live my life. The values of trustworthiness, integrity, and helpfulness have allowed me to become the man I am today.
The words that describe me are:
Driver of my own professional destiny
Conduit for connecting people for professional development
Devoted husband with a wonderful wife
Father to 2 beautiful children with growing college funds
Student of Finance and Investments
After graduating college and starting a career in my field of study (agronomy), I quickly rose to the position of assistant and then superintendent of private golf courses. After 17 years in the golf business, I decided it was time to change to a career where I would not be at the mercy of the uncontrollable forces of sun, wind and rain. I chose a field where I would be the master of my fate, where the hard work and the long hours to which I am accustomed would be the determinant of my success.
The primary reason I am in the real estate business is to help people. A real estate transaction is one of the largest financial transactions you will ever undertake. Everyone deserves a real estate partner that understands and appreciates that fact. My focus on integrity, trust and communication are nothing less than I would want for myself, my family or friends entering into a large financial proceeding. I am committed to being the one real estate agent that keeps my client's best interests front and center.
In real estate, I consider myself to be a true professional in the same vein as the physician, the attorney and the accountant whom you must trust with the most important assets of your life. Nothing less is acceptable.
Alexander NeckerProudly Presents13811 Manor Glen RoadBaldwin MD
"We had a house that was was in a location that was going to be hard to sell. Alex was very up front about this problem, it did not stop him from doing everything he could to sell it. The quality of the staging and media presentation was great. The house was shown over 40 times in a few months. (He encouraged us there is a buyer for every home). We were selling the house for my mother, he also was very helpful in this situation. We cannot say enough good things about him. He goes above and beyond. He even met with contractors when work needed to be done and we could not be there. We will always use him and recommend him to everyone"