When looking for a place to live in Seattle or on the Eastside, affordability is a big factor in the decision to purchase or rent a home, but it’s not the only factor.
This could be a hard nut to crack, until you run the numbers in a rent vs. own calculator. To do that you’ll need to ask yourself these important questions: How long do you plan to stay in your home? In what location would you like to live? What are the prices to rent or buy in your area? What are the pros and cons of renting and buying?
Of all these questions, the one at the top of the list should be the time you plan to spend in the home. According to Zillow’s chief economist, if you plan to stay longer than 3 years, it’s more beneficial to buy.
Location location location. House prices and rental costs in Seattle and the Eastside will vary wildly depending on the area. Having a good real estate agent who knows the area can help you strike the right balance of location for the price.
According to Apartment Insights Washington, the number of people renting has risen 6% in King and Snohomish counties over the past year. If you already own a home, the rising rental costs around the country could indicate it’s a good time to rent your home for a profit.
In comparing condo ownership and apartment rentals, the numbers are astonishing. According to Trulia, owning a condo, including all maintenance, taxes and insurance is 42% less expensive than renting in the greater Seattle area. Home ownership also means a tax benefit and the ability to build equity overtime.
Renting has its benefits too. None of your hard earned money goes to maintain the property. Plus there’s much more flexibility to move when your lease is up without being tied down.
With so many factors and the changing economy and market, renting or buying can be a calculated risk, but this renting vs. buying calculator could be just the key you need to get you into your next place.