Rent vs. Buy

Many times, we weigh the advantages of renting (someone else covers repairs & maintenance, some utilities, taxes, etc) to buying (equity/investment, ability to change what you want, when you want).  But is there a solid difference in cost?

I looked into available rentals in Port Angeles and averaged the cost of rent for each home size, then did the same for recently sold homes in Port Angeles.

(cost to buy assumes 20% down and does not include homeowners insurance)

  • A one bedroom home or apartment rents for $592 a month on average in Port Angeles.  With 20% down, the average mortgage payment on a one bedroom home in Port Angeles ($125,000) would be $596.
  • A two bedroom home or apartment rents for $836 a month on average in Port Angeles.  With 20% down, the average mortgage payment on a two bedroom home in Port Angeles ($175,000) would be $835.
  • A three bedroom home or apartment rents for $1,131 a month on average in Port Angeles.  With 20% down, the average mortgage payment on a three bedroom home in Port Angeles ($240,000) would be $1,145.
  • A four bedroom home or apartment rents for $1,375 a month in Port Angeles.  With 20% down, the average mortgage payment on a four bedroom home in Port Angeles ($290,000) would be $1,384.

As you can see, renting and buying have comparable costs.  Buying a home will cost you slightly more, but the return on investment is significant.  In 2015, the Port Angeles real estate market has grown roughly 8%.  On a $240,000 home, that is over $19,000 in equity in just one year.

Now is a great time to invest in a home.  The interest rate is still relatively low, and there are more loan options than ever.  Worried about the down payment? There are so many programs offering assistance, and FHA has zero down options.  I would love to discuss your options with you, and help you find a lender that will work with you to find the best option for you.

Special thank you to Debbie Rutherford at Evergreen Home Loans for contributing to this blog.

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