Posted on February 4, 2014
It’s cold, very cold on this Tuesday, February 04, 2014 in Bellingham, WA. Canada is sharing its cold front with us and we expect to “enjoy” it for a few days to come! Brrrrrrrrrr – it’s a whopping 28°!
CAN YOU AFFORD TO IT?
And yet again we bring up the subject of renting versus buying! Can you afford it? Did you know that if you are paying $900/mo in rent, in just 1 year you have paid $10,800 and after 15 years, $162,000; 30 years $324,000? Now, let’s up the monthly rental amount to $1,250- a more realistic view! In 1 year, you will have paid $15,000 and in 15 years $225,000; 30 years, $450,000!
With the above in mind, let’s add to the scenario the fact that per MPF Research, apartment rental rates rose 5.5 percent during 2013 in Seattle’s metro area. In King, Snohomish and Pierce counties, the average rent for a 1BR unit was $1,051 and 2BR units were running on the average $1,255. The city of Everett, within Seattle’s metro area, had an 8 percent average rent increase. In other areas in South Seattle, the rent increases ranged from 6.4 percent to 7.1 percent.
What about 2014? Dallas-based MPF Research foresees a 3.8 percent rent hike in the Seattle metro area. Yes, we live in Bellingham, but rents are increasing here as well. With this in mind, wouldn’t it be a good time to stabilize your monthly housing payments? Buy instead of rent; and then at the end of 15 years if selling is necessary, you can, at least, recoup your equity and perhaps more.* Why not get pre-approved with a loan officer and see what you can do to get into your own home!
*Material gleaned from The Bellingham Herald, Apartment rental rates rose a healthy 5.5 percent during 2013, Tuesday, February 4, 2014.