Buying vs. Renting: Which is best in Kingwood and Humble areas?
Let’s face it. The cost of renting a home or an apartment is not getting any cheaper. In fact, Houston was among the 10 cities with the biggest rent increases in 2018. The average cost for a 1 bedroom apartment renting in Kingwood is about $1156. The average cost for a 3 bedroom home for rent is about $1500.
Reasons To Rent
- No HOA costs
- No property taxes
- Lower utility costs
- Lower insurance costs
Reasons To Buy
- Return on investment
- Tax credits
- Build equity
- Appreciate in value
People also rent out of necessity and all needs are different. Renting can allow time to get finances and credit scores together to be able to purchase a home. Maybe renting is the best decision in order to scope out the best schools, neighborhoods, and recreation for your children.
Paying Rent Could Be More Than A Monthly Mortgage
What some renters don’t know, is that buying a home could actually be less than paying rent. When buying a home, there usually is a down payment depending on what kind of loan you get, some upfront costs, and closing costs. The more money that’s put down, the less the monthly mortgage will be. Interest rates and credit scores impact the monthly as well.
In the below example, would you rather be paying rent on something you don’t own, or towards a home investment?
The average rent is $1300 a month. $1300 x 12 months is $15,600. $15,600 x 10 years is $156,000.
To give you an idea of what your mortgage could be, plug in some numbers. For instance, if a home was purchased at $180,000, down payment of 20% ($36,000) for 30 years at 5% interest rate, the monthly note is estimated at $998.02.