Is it better to Rent or Buy in Hendersonville NC?
First and foremost, renting an apartment or home versus buying a home is a highly personal choice! Ultimately, each person must way the pros and cons of each against their unique situation to determine which is the best path, which may not be the best financial option. Even personal finance experts have differing opinions on whether it is better for most people to rent or buy. Read JL Collins excellent post “Why Your House is a Terrible Investment” for the negative perspective and an article with David Bach at CNBC titled “Self-made millionaire: Not buying a home is the single biggest millennial mistake” for the positive angle.
One of the biggest factors is the ratio of rent to home ownership costs for any given area. In early 2019, RentJungle pegs the average rent in San Francisco, CA at $3,787 while Zillow shows the median home price to be $1,365,700. A mortgage at that purchase price would be in the neighbourhood of $5,819, so renting would be a better option in San Fran. This trend plays out in most high cost metro areas.
On the other hand, rent in Hendersonville, NC median rent was $814 from 2013-2017 with a median home price of $168,000 according to U.S. Census data. A mortgage at that purchase price would be $964, so much closer to the median rent. (Neither scenario includes every factor such as the opportunity cost of investing the $150 difference or the impact of tax deductions for home owners.)
Ultimately, there are plenty of people who chose to buy in San Francisco and that rent in Hendersonville, NC which proves home buying is not all about dollars and cents. Regardless, anyone thinking of buying a home should first have their finances in order [link to other blog post].
As for me, I rented when I was younger and have since purchased two homes at different times. For me, the personal benefits of home ownership outweigh any financial benefits I could receive by renting. Run the numbers and make the best choice for yourself!