Did you know? Purchasing a property for your children to live in
when attending College or University in certain cities can actually
save you money as opposed to renting. Well it is absolutely true.
In cities where there is a bustling College life there is often a
substantial difference between the rent and mortgage rates that one
would have to pay on a monthly basis.
Realtor.com just enacted a study looking
at the cities where the top 25 Universities according to the latest
U.S. News & World Report’s annual school rankings are located. From
here the Real Estate markets in these locations were measured
against one another with the average rents achieved for a property
acquired from the data supplied by Rentbits.com. In addition, mortgage rates
were then determined for the median priced properties in each
location judging by what is available on Realtor.com and assuming a
30-year-fixed mortgage with a 20% down payment and an average
interest rate seen today being 3.6%.
The rankings below are in order for which city has the highest
rents relative to the average mortgage payment one should expect to
pay for comparable median priced properties. The difference between
the rent and mortgage in each locality is also mentioned below:
- Boston – 248.7%
- Chicago – 226.4%
- Pittsburgh – 215.8%
- Princeton, NJ – 209.8%
- Atlanta – 182.6%
Here in Boston we have over 100 schools that consist of more
than 250,000 students; Boston truly is College-Town-USA. With the
economy improving especially on the local level and with such a
high demand to be in Boston on a temporary basis due to our array
of world-class schools and hospitals, rents are extraordinarily
high. How high to be exact? $3,084/month is what an individual is
tasked with paying for a median priced property which is determined
to be $334,900. Looking to this same type of property if one were
to purchase it, the monthly mortgage bill would only run them
$1,240; a fraction of the rental cost.
So what does this tell us? Evidently it is a better decision to
buy
than it is to rent in Boston. For
investor purposes, not only is it a wonderful opportunity to
purchase property but even to rent property with how high the
rental fee’s currently are. With the Real Estate market on a
serious rebound and with prices beginning to climb, it only makes
sense that now is the time to buy if one is looking to make a solid
investment that will last for the prolonged future; even Warren Buffett
agrees.
More Information: The Street