Should You Rent Or buy In Charlotte, NC?

This is a question that has puzzled people for the past year and half. There are arguements for both sides on this and there may not be a wrong answer. However; one variable that can affect the market is pricing. Both home prices and rental prices. With the market crash and home foreclosure at record levels; those people had to find someplace to live...they could not buy so they are renting.

This has pushed the demand for rentals up and the inventory levels low. Thus property management companies are charging more for comparable rents than they were in the past. Homeowners looking to rent their homes now have more choices than before. All this leads to a very strong market for landlords and apartment complexes.

But what is the impact on home buying? Trulia just finished it's second quarter study in regards to whether it was a better option to buy or rent. They compared apples to apples in regards to homes bedrooms and bathrooms. What they found is that it is more affordable to buy a home today in Charlotte than it is to rent a comparable place. You actually would pay LESS to own right now than rent.

You read that right. It is NOT a misprint...It is cheaper to own a home in Charlotte on average than it is to rent a palce in Charlotte. So, is it a good time to buy...the answer would have to be YES.

When my critics say NO...I say "you can have a lower payment and actually qualify for tax deductions and a guarantee that your payment will not go up (unless your taxes and insurnace do) versus yearly wondering if they are goign to raaise the rent and by how much. In Charlotte the average has been 10% a year for the past two years".... My only question would be where do I sign me up...

In fact, I am currently helping three families looking to purchase a home that were shocked to hear what the mortgage payment would be in relation to what they are currently paying in rent. Iin fact one is moving a mile away into double the square footage and paying only $10.00 a month more. the other two are moving into larger homes for the same or less than they are paying now in rent.

So, if you are contemplating buying a home; now may be the time. Interest rates are low, inventory is high, and mortgage payments are less than rentals....All positive signs for homebuyers today.


Dave diCecco
Realtor/Broker
www.davedicecco.com