How much would it cost to rent a 2 bedroom 1 bath, or better in 60189? Let's assume we were looking for something a bit nice. What would that cost?
Rentals in 60189 vary, but we could expect to pay in a range of $1,125 a month for 995 square foot and upwards. Currently there are rentals of $1,395 per month near the high end of the monthly rents.
So to make a comparison of rent versus buy, I'll use $1,200 a month as rent.
What would be our "out of pocket" costs if we were to purchase a condo at BLMH? I'll use the 2011 monthly fees and 2010 real estate taxes that I pay for my unit, which is a "B" unit as an example. However, it's important to realize that my condo is about 1,300 square feet, 3 bedrooms and 2 baths. So my fees could be higher than what you might experience.
Assumptions:
Monthly rent $1,200.
Purchase at BLMH for $140,000 with 5% down and 4.89% 30 year fixed rate mortgage.
Include BLMH monthly fees and real estate taxes in comparison.
Other assumptions: Owner keeps the condo for 10 years, rent or property values increase by 3% a year over that 10 year period.
What's the result?
The cost to own is $15 per month more than renting.
However, at the end of 10 years, the owner would have $33,834 recoverable equity, after paying a broker a 5% selling commission.
Not bad! Think of it this way. If you purchase at current prices, and stay here for ten years, it's possible you will have saved the equivalent of $267 per month by owning, as opposed to renting. And that's after paying real estate taxes and monthly fees!
On the other hand, continue to rent, and pay your landlord. It's your choice!
Comments, Corrections, Omissions, References
Note 1. There are units for sale at BLMH for less than $140,000. At that price, it's a bargain, and the numbers confirm it.
Note 2. According to Zillow, the unit above would rent for $1,425. I don't know if I could rent my unit for that, but it's an indicator of what I might expect to pay to live at BLMH.
Note 3. According to Zillow (April 1, 2011) the mid point for Wheaton home prices are $259,900. That is, half of the houses in Wheaton are priced above, and half are priced below.
Note 2. According to Zillow, the unit above would rent for $1,425. I don't know if I could rent my unit for that, but it's an indicator of what I might expect to pay to live at BLMH.
Note 3. According to Zillow (April 1, 2011) the mid point for Wheaton home prices are $259,900. That is, half of the houses in Wheaton are priced above, and half are priced below.
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