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When calculating the cost of purchasing/ renting, are they including condo fees, property/school taxes. In some areas the tax/condo fees alone exceed typical re
by Unregistered 15y ago
When calculating the cost of purchasing/ renting, are they including condo fees, property/school taxes. In some areas the tax/condo fees alone exceed typical rents.
- analyst74 15y agoThis is one of the most overlooked cost for first-time home buyers, all the cost in condo fees and taxes are not going to contribute a cent to your equity either.
- dangrossman 15y agoThough the taxes are tax deductible, unlike rent. I moved out of a 2br apartment to a large 4br home where my mortgage and taxes are slightly higher than my rent was, but after tax deductions, I'll end up paying less. Being self-employed, I need all the deductions I can get, anyway.
- Caerus 15y agoAlso, utilities. I only pay for electricity at my apartment, and thanks to some 12" stone walls it's quite low. I talk to people my age who have bought homes and their utility bills can be as much as 40% of my rent.
- roel_v 15y agoMaybe it's different in your area, but most areas I have experience with, no utilities are included in the rent. Plus a lot depends on how the place is heated/insulated (or cooled/insulated).
- bzbarsky 15y agoThe utility situation really depends on the area, yes. For example, my experience renting in Chicago is that water, heat and hot water were typically included in the rent. That's most certainly not the case everywhere.
- dman 15y agoI tried pretty hard to find a house in the New York Metropolitan area this summer. Once you factor in the taxes, HOA fees and mortgage I would be paying roughly 2x in monthly payments to get an apartment similar to the one I rent. When I consider that my house will not return me more than 3-4% pa over a long term I decided it was not worth it to buy. Also houses have a end load of ~5% for agent fees.