For many people Renting an apartment may be a first, and if it is, it can be confusing or intimidating.But it doesn’t have to be!The first thing you must do is set a budget. Now, rent cost vary
With rent prices increasing, why wouldn't you consider buying?
Let's start by looking at rent prices. In 2019, the Metro Boston area alone, saw a rent increase of 16%!! That would mean a $1,500 apartment went up to nearly $1,750!! Can rent prices continue to raise? Maybe and maybe not. Let's look at some undeniable facts. Even if they do not increase at such a high percentage, we can expect an increase and here's why;
Public transportation is getting more and more important. There are around 2 million people in the city of Boston during an average work day and only about 600,000 at night. That means people commute. And as we all know, parking in Boston is a complete pain or it will cost you. If you are one of those 1,000,000 people commuting each day, you might opt to take public transport. That would ideally mean living close to a T stop. Well, landlords and investors know that and price accordingly. This will keep rents in those area always higher.
All the schools! Boston is a hot spot for higher education. With 35 colleges in Boston, that means students will travel here and they will want a place to live. It's plain and simple. They will take units and cause scarcity, thus keeping rents high.
Let's say you find a perfect affordable apartment, close to the City and the T. Now you have to pay. With upfront costs being anywhere between 3-4 rents. If it costs $2,000 that can be $6,000+. That's about half of a down payment on a home that you would own!
What you pay in the year? Ok, so let's take our same $2,000 apartment, in a year, that will cost you $24,000. That is $24,000 gone. You will never see it again. You just paid someone else's mortgage and then some.
Now when you own, you are investing into your own future. You can look at your home as a saving account. You continue to put money in until your ready to take it out. NOT TO MENTION THE TAX BREAKS that come with owning your own home. You just went from LOSING $24,000 to investing it and getting a tax break on it.
Besides Financial reasons, there is the emotional tie. It's like buying your first car. Your filled with a sense of pride, ownership, freedom. This is your home! Whatever you want to do, you can do it!
So why buy? I think the better question is ; Why not invest into yourself and your future instead of your landlords? Why pay someone else's mortgage? Why compete with others to fulfill your landlord's goals?
Buying is alot easier than you think. If you have any questions, call me at 781-572-5618!... P.S. buyer's don't pay for agents!!