Renting vs Buying a Townhouse at Congers Creek


Renting vs Buying a Townhouse at Congers Creek
By Scott Rogers • June 6, 2022
Most of the townhouses at Congers Creek are being purchased by homeowners, but some are being purchased by investors as rental properties... which means you will likely have the opportunity to buy or rent at Congers Creek in the near future. Let's see how those two options compare... RENT = $2,000 / month. The rental rates I have seen thus far at Congers Creek range between $1,950 and $2,200 per month. These rental rates are for a three level townhouse with a garage and (finished or unfinished) bonus room. BUY = $1,785 / month. With a 90% loan, buying such a townhouse apparently may cost as little/much as $1,711 per month assuming a $300K purchase price and a 5.25% interest rate... and when we add the $75/month association fee, we get to $1,785. Now, let's look at the difference between renting and buying over a five year time period... Total Rental Payments over 5 Years = $120,000 Total Mortgage Payments over 5 Years = $107,100 Principal Reduction of Mortgage over 5 Years = $21,196 Effective Total Housing Payments over 5 Years = $85,904 Savings over 5 Years = $34,096 As you can see, this builds a somewhat compelling case for buying instead of renting if you are going to be living in this potential townhouse for the next five years. A few other factors to keep in mind.... Your cost savings will potentially be even greater than outlined above based on your tax savings you will see each year because of having paid mortgage interest. The analysis above does not factor in your closing costs when buying. Your purchase price could end up being higher than outlined above if you choose to upgrade your townhouse during construction. If you are renting a townhouse now, but suspect you will be living in Harrisonburg for the next five years, let's chat about what could make the most sense for your housing situation... at Congers Creek or otherwise. P.S. I represent the builder at Congers Creek. Receive Updates by Email Recent Articles: There Are Plenty Of Types Of Houses That Exist That Just Are Not Available To Purchase Home Sales By Price Range In The City Of Harrisonburg Are You Compromising On Aspects Of Your Next Home That You Can Or Cannot Change Later? How Much Slower Are The Winter Months In Our Local Housing Market? Rockingham County and New Home Sales Drive Surge in Area Housing Market Find The Balance Between Optimistic And Realistic Home Pricing Room Size Is Difficult To Understand Solely From Real Estate Photos How Much Would You Value Not Having To Prepare Your Home For Showings? One Out Of Four Homes Is Taking Longer Than A Month To Sell Consider The Cost Of Your Planned Renovations When Planning Your Offer
Have any questions? Contact Scott Rogers at 540-578-0102 or scott@funkhousergroup.com
Based on information from the Harrisonburg-Rockingham Association of REALTORS® or its MLS, for the period Jan 1, 2000 through Nov 22, 2024 (unless otherwise noted).
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