With the influx of relocations to Saratoga County going on now, many newcomers are faced with the question: “is it better to buy or rent in Saratoga County?” There are a few reasons people choose to rent vs. buy, and the reasons are valid, however, if you look at how much more it’s costing you, it’s worth considering buying right away!
At the time of this writing, there are 67 active 3-bedroom, 2-bathroom rental listings in all of Saratoga County. The average monthly rental price for these listings is $2,148. That’s astounding, right? Do you know how much house you could afford to mortgage for that amount? Depending on how much you put down on a purchase, you could easily buy a $350,000 home and have the same monthly payment (or less).
A recent study showed that it is 35% cheaper to buy than rent, but keeping extra money in your pocket from month to month isn’t the only reason to invest in home ownership. Did you know that the average American’s net worth also varies drastically between home owner and renter? The average American homeowner’s net worth is $174,500, compared to the average renter’s net worth of just $5,100.
This all may be enough to get you thinking, “okay, maybe I’ll buy eventually then.” But eventually is a word that is going to cost you more money. The interest rates are expected to start a steady incline in December. Look at the example below to see exactly how much the rising interest rate could impact you if you wait a year to buy:
Purchase Price Interest Rate Monthly Payment with P&I
$250,000 4.22% $1225.46
$250,000 5.3% $1388.26
Monthly Difference = $162.80
What could you do with an extra $162.80 per month? A lot. Not only that, but the amount of home you qualify to purchase will go down. Maybe you could afford a $250,000 house right now at the current interest rate, but if that same house is going to cost you an extra $162.80 per month, you don’t qualify. It’s something to seriously consider.
Meanwhile, renting isn’t getting any more affordable. There’s also a lack of rental property available in Saratoga County. The supply does not come close to meeting the demand with all the relocations coming in right now.
It just makes sense to buy right now. If you end up having to move again soon, you can always keep the home as an investment property and make positive cash flow right out of the shoots!
Call us today to discuss! We are here for all of your Saratoga County real estate needs.