Real Estate — Rent vs. Buy
As the economy steadily improves, owning a home is once again proving to be a more affordable option than renting in the Greater Boston area. There are three main components that sway people to buy rather than rent. The first being favorable mortgage rates, next is tax deductions, and third appreciation/investment.
$350,000 loan @ 3.25% = $1,523/mo Principal & Interest
Property tax, estimated = $3,000/year = $250/mo
Condo fee, estimated = $150/month (includes water, sewer, insurance)
Total Monthly Cost = $1,923/mo (this does not include tax deductions)
A similar property valued at $350,000 is currently renting for $2,000+ per month.