Buy to rent out, or just rent for now?

Asked by Heather, Hacienda Heights, CA Wed Jan 15, 2014

Looking to move from CA to Charlotte, and debating between buying/renting. Is there a good trend for investment/rental properties in southern Charlotte, or should we just rent for the time being? We will be living in the house for a minimum of two years...

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dave, Agent, Charlotte, NC
Thu Jan 16, 2014

the ongoing debate between buying and renting has cropped up quite often these days. One variable that seems to be an underlying factor is that you can pay less to own a house than if you rent the comparable home right now. With interest rates as low as they are and prices still low as compared to the pre-recession it has a lot of people I know buying because of the rental market being so high.

The demand for rent in the Charlotte area is very high and most properties do not last long thus rising the prices people pay for a rent... The difference can be between 10% to 30% difference depending on the price point you are looking at and the location.

The projections for Charlotte over the next couple of years shows that buying is an advantageous thing right now as prices are expected to increase slowly over the next few years.

But ultimately it comes down to what you are comfortable with and what you are looking for. If you can let me know what you want and where you want to be. I can give you an idea of a rental versus a buy comparison for that area so you can have all the facts to make an educated decision.

Dave diCecco
Helen Adams Realty
Cell: 704-519-7895
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Scott Cox, , Raleigh, NC
Thu Jan 16, 2014
Depending what type of loan product you apply for the upfront costs for purchasing can be minimal. Consider a USDA loan 100% financing, 97% Fannie Mae conventional or even an FHA with a 96.5% Loan to Value.

Scott Cox
Mortgage Loan Officer/Green Tree
5001 Weston Parkway Ste, 200A
Cary, NC 27513
919-219-2252 cell
866-509-6140 fax
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Vivian Olkin, Agent, Carrboro, NC
Wed Jan 15, 2014
Hi Heather,

That is a no-brainer for me. Prices are going up, interest rates are going up so buying now would be advantageous. Who know where you'll be in 2 years--perhaps the same house and you'll be happy to be paying your own mortgage rather than contributing to the mortgage for someone else. Assume that the house will appreciate at least 1-2%/year. There are tax advantages plus the pleasure of living in your own space. Often your mortgage will be less expensive than rent.

What is key is location. Make sure you buy in a location that is desirable so that it will sell easily if you sell in a few years.

Good luck with the move. I'm from CA, absolutely love NC.

Vivian Olkin, aka CrazyViv
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