Sure, why not? You’ve been renting an apartment or better yet, someone’s condo or house for the past 3 years. You watched as all your friends bought homes 5 years ago and lost money in the crash. You’ve got your feet kicked up and you’re waiting for the “market to come back”. You’re happy as a clam paying $1200, $1300, $1400 dollars per month for your great place. After all, it’s got one and a half bathrooms, and a garage! It’s almost 1000 sq. ft!
Keep Renting … it’s a great horrible financial decision in this market! I’m here to tell you why.
Doing a Google search it appears that the average rental rate in the Novi, MI area is about $1300/month. (Google has everything) That’s for a 2 bedroom, 2 bath “nicer” apartment. (I use the term nicer loosely because these places are typically beat down from multiple tenants)
If you were to take that same $1300 and put it towards a mortgage payment, you could afford a house around $195,000! Here’s the breakdown . . .
$195,000 – Loan Amount
30 Years – Mortgage
4.5% – Interest Rate
$988.00 – Payment
$312.00 – Yearly Taxes and Insurance
Total monthly payment is $1300! So now it’s a matter of seeing what that $1300/month gets you. I can tell you it will get you more than your 2 bedroom apartment. In fact, right now in Novi, MI between $190,000 and $200,000 there are 5 hours available. They all have master bathrooms, basements, garages, and they’re over 2000 sq. ft.
You could easily move into a similar place you’re living now for probably $500 less per month and save money! So Keep Renting, because that’s a great idea, or see what your money can do for you. You owe it to yourself to at least look.
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