Owning real estate in lieu of renting real estate in Atlanta has almost always made more financial sense. For decades and decades, Atlanta ownership beats Atlanta tenancy, dollar for dollar, cost for cost.
Since 2007, I’ve recommended that buyers check out the Trulia rent vs. buy index. Trulia studies the monthly rent in every zip code in the country and then they add renter’s insurance and a refundable security deposit to their calculation to get a baseline cost of leasing to compare and contrast with ownership costs in the same submarket.
“To calculate the cost of buying, we start with the purchase price and calculate the initial down payment and buyer closing costs; the monthly mortgage payment and other recurring costs like maintenance, property taxes, and insurance; income tax deductions for mortgage interest and property taxes; and the final mortgage payment, sales proceeds, and seller closing costs. These costs depend on numerous assumptions, like your mortgage rate, your income tax rate, how long you stay in a home, and local home price appreciation: we provide baseline assumptions that we encourage you to tailor to your personal situation.
Trulia then calculates a “net present value (NPV) calculation to compare the total costs over time of renting versus buying, and to account for opportunity cost of money.”
The Wieloch Group is all about helping Atlanta buyers make informed decisions, so if you are on the fence about buying a property instead of renting – give us a call!