The old formula is still holding true: High rents + low interest rates = a good time to own vs. rent. Recently, our very own Erika Pereira was quoted in the Boston Globe article; Skyrocketing Rent has Tenants Searching Outside City, stating that, "We are not in a typical market by any means."
No. No, we are not. Median rent in Arlington has jumped 10% from 2011 to 2014. As the KCM Group puts it, 'Either Way, You're Still Paying a Mortgage.' You can pay your landlord's mortgage, or you can pay your own and get the tax breaks that come with it, as well as contribute to your own net worth.
The fact that many renters are getting pushed out of their neighborhoods or forced to pay higher rent prices makes a strong 'own vs. rent' case. But, we're not sugarcoating anything by saying that owning is easy, either. Arlington single family homes have also increased by 16% from 2013 to 2014. However, inventory is loosening up and Arlington is still a more affordable alternative compared to neighboring towns of Lexington, Winchester, Belmont and Cambridge.
Owning vs. renting might mean leaving the city neighborhood you've become accustomed to. But it also means making an investment in your future. Suburban towns like Medford and Arlington have their own vibrant, walkable areas that won't make you feel like you're in minivan-land. Go to other under-the-radar towns like Burlington and Waltham and you might find homes with even more bang for your buck.
The question of whether to own vs. rent is dependent on your financial abilities and personal preferences - but it is certainly an option worthy of looking into.
If owning a home sounds preferable, give us a call. We'll help you figure out what's possible.
image via: Krasimira Nevenova