If you’re looking to buy a house, you might want to go ahead and run the numbers for your area. To say buying is better than renting or vice versa is foolish, as everyone has a different situation.
Run the numbers before you go ahead and buy a house.
Rent vs Buying Costs
I wanted to give you the run down with our housing expenses, so you can see for yourself how it actually works.
Mortgage $ 661.67
Escrow * $168.58
HOA Fees $112
*Our escrow account takes care of insurance and property taxes.
I based the rent amount on a comparable 3 bedroom apartment in the same area. We’re in an area of town with some growth. I used Rentometer to get an estimate.
One of the reasons we’ve bought this particular townhouse is the resale value. We definitely plan on being here in this particular place at least 3 years so we don’t have to pay back the $8,000 tax credit back.
Weigh the Pros and Cons of Owning a Home
So you can see, buying a townhouse was a better option for us than renting an equivalent. We live in Raleigh, NC and depending on what part of town you’re in, you can find a huge range of prices for homes and apartments.
You don’t have to fall for the home buying myths. Find out for yourself if buying is the best move for you. If you decide that buying a home works for you, make sure you take advantage of the tax credits available.
Elle Martinez helps families at Couple Money achieve financial freedom by sharing tips for reducing debt, increase income, and building net worth. Learn how to live on one income and have fun with the second..