Rent V. Buy in Charlotte, NC.? Which Option Is Better?

The question is asked each and everyday by prospective home buyers...Should I rent or should I purchase a home? What is the best route for me to go? That question has many answers. But for the sake of this blog...we will say you have the down payment and your credit score qualifies you for a home purchase.

I see a lot of young couples and professionals moving to the Charlotte, NC. area. The reason is that they are either being transferred to here or they are coming here for a new job. One of the things they all ask is should I rent or should I buy?

Now, everyone is different. Sometimes your needs and wants do not translate into buying right away. But if you are wanting to buy but on the fence to whether you should pull the trigger and actually look at homes and buy....you need to consider a few factors.

What would I accept for a rental? By this how many bedrooms and bathrooms must the place have? Does it have to be in certain area? Am I looking for amenities? Space? is my things going to fit or am I going to have to get a storage unit as well? What am I willing to pay a month for rent?

The answers to those questions coupled with what you are looking for to purchase and how much you are willing to spend along with the same questions above can give you a good comparison as to affordability and whether it is less expensive to rent or own.

Trulia posted their second quarter numbers for rent versus buy yesterday. Charlotte ranked right in the middle. Rent was slightly less expensive but home ownership still may be a better option. Why?

Interest rates are at historic lows. With the federal government stating it will not raise the interest rate until 2013 has kept the rates historically low. That coupled with the fact home prices in Charlotte, NC. are at 2006 levels (according to numerous studies out there) has made it even more affordable for people to own a home.

So, even though Trulia states on an average 2 bedroom rental is slightly cheaper to rent than own the option is still one that they say you should consider buying versus renting. This trend has held true throughout most of 2011.

I have helped many new homeowners realize the dream of home ownership versus renting....In all cases they have lowered their monthly payments to less than they were paying in rent.

If you are renting now or moving to Charlotte area and thinking of renting you may want to consider looking into buying a house....It may cost you less than it does to rent.....

Dave diCecco
Realtor/Broker
www.davedicecco.com