Renting v. Buying
A recent tragedy brought me back to upstate NY last week to be with my roommate from college. While I was there, I spent a few hours driving around and visiting all of my old spots. Here is one of my photos from my quick hike in Thatcher Park:
Another spot that I drove through was the apartment that we lived in right before we moved to Omaha: Adams Station. It hadn’t changed at all, and it got me thinking. One of the many reasons we left NY was the cost of living. The first year we lived in Adams Station in 2005 our rent was $900 p/month for a two bed and one bath apartment. The next year they increased our rent by $50. In 2007 they decided to include internet and cable in the rent bill, and our rent was set to increase to $1150. That was the year we left. With very little money in the bank, we packed up a U-Haul and headed to Omaha with hopes of getting to a place financially where we could own our own home for our growing family. It took two years of cleaning up our credit and saving for a down payment but it did happen for us in 2009. Now, about fifteen years after that move from NY to Nebraska, our home has become a significant asset for us.
After driving through the apartment complex, I looked up the rent at Adams Station and found that their one bed one bath apartments were renting for $1770 p/month, almost twice as much as it was in 2005. Unfortunately there wasn’t any information about the cost of the two bedroom apartments but my guess would be in the ballpark of $1850-$2000. Crazy.
All of that was a really long-winded way to get to my point: no matter when you decide to buy your first home, it’s a good time to get into the market. I have yet to meet anyone who told me their rent went down, but when you buy, your principal (the amount you owe on your home) goes down every month and essentially becomes a savings account for you. The best part is: you also get to live there!
If you are on the fence about whether it is a good time to buy, I would love to discuss market conditions and interest rates. While it is still a seller’s market, the conditions of purchasing a home have normalized a bit more for buyers. Homes are staying on the market longer than three hours and interest is still relatively low. If you already own and are wondering if you should use your equity to move to a different home, I would love to talk to you about the conditions for a seller.
Even if you’re not ready to buy or sell, I hope you’ll think of me when your friends and family are ready. I’ve got a great reward system for all referrals!
Stay cool friends.
Your favorite realtor,
Molly
