Well, yes and no. Let’s say
you decide to continue renting for another year. The good news
is, you won’t be responsible for repairing the leaky roof,
fixing the dishwasher, replacing the worn carpeting, or any of
those other headaches that come with ownership.
However, there is bad news - rents go up. Here’s a small
segment of rental statistics for the last 5 years in Prince William
County.
Based
on MRIS data for units in Prince William County rented January
through March of each year.
Paying more every year in rent is not the only bad news. You
won’t be able to deduct your rent from your taxable income,
and, oh yes, if real estate values go up while you live there,
you won’t get any of that price increase in a big fat check
when you move.
|
Here’s some data to show just
how big that check could be.
Based
on MRIS data for units in Prince William County sold January through
March of each year.
If you bought a condo in 2002 for the average price and sold
for the average price in 2006, your equity (the part that belongs
to you, not the bank) would have been $150,322.
Back to the dishwasher and worn carpet. Would I pay $1,500 (cost
of a new dishwasher and carpet) to get 150K? Mmm, let me think.
I can’t get that kind of return on Wall Street, not to mention
I can’t live in my stocks!
So which is going to cost more in the long run, buying or renting?
If you make the decision to buy, give me a call! I can show
you how to take advantage of this market, and start paying yourself
instead of your landlord. |
Judy
Handres
