“Now is a great time to buy!” It’s a phrase we’ve been hearing quite a lot these days. And why not? Inventory is high and interest rates are low, low, LOW! What they should do is add a disclaimer to the end of that statement. “Now is a great time to buy… if you’re ready.” Whether or not renting or buying is right for you is truly dependent on a variety of different factors.
First, is your record free of those ugly little red marks such as bankruptcies or liens? Do you have a reliable source of income? Are you prepared to stay put and maintain a home for at least 3 years? Are you willing to live by a responsible budget?
Once you’ve answered these questions, there are more numerical questions to calculate.
Have you been able to save a down payment of at least 20%? Is your credit score above 750? Is your total debt below 38% of your total pay? Do you have 3-6 months’ worth of expenses in savings?
If you answered YES to these questions, then CONGRATULATIONS, because you are ready to buy your home. And that’s great, because it really is a good time to purchase a home… if you are ready.
The median price asked for a home in Augusta, GA is $91,165 dollars; that is 24.8% less than the Georgia State average and 36.2% less than the National average.
The median rental rate in Augusta, GA is about $738 dollars per month for a two bedroom, 1.1% less than the Georgia average and 14.4% less than the National average. For a three bedroom, the average rate for a rental jumps to $958 per month.
While renting in Augusta is still less expensive than other surrounding cities, there are long term benefits to buying a home.
Let’s break it down.
A 3-bedroom, 2-bathroom, quality ranch home in a sought after community will run about $150,000 dollars.
The average 30 year fixed mortgage rate in Augusta is 4.29%.
With a monthly mortgage payment of $958 dollars (The average rate of a three bedroom rental), your house would assume a less expensive yearly cost after just three years.
Yes, there are more upfront costs such as a down payment, which experts suggest should be at least 20% of the home’s purchase price in order to get out of paying for private mortgage insurance. But buying home is a long-term investment, and after as little as three years, you can be paying less than you would if you had stuck to a rental.
To calculate how long your investment would take to pay off, use this link, provided by the New York Times.
Buying a home is a right of passage, an accomplishment worthy of pride, and over the long run, more economical. If you are ready to take that big step towards home-ownership check out these neighborhoods to find your dream home that is both perfect for your family and your budget.