Maryland Real Estate – Cheaper To Buy Than Rent?
Is it cheaper to buy real estate in Maryland than rent? According Trulia, Baltimore is on the list of cities where buying is better value than renting. Baltimore isn’t the only place in the region to score well either with Washington DC and Virginia Beach also sneaking in. It bodes well for those looking to move to either Maryland, Virginia or Washington DC but only if buying.
According to Trulia, average listed home prices in Baltimore are just under $190,000 while average monthly rentals sat at $1300. For Virginia Beach, the values were just under $180,000 and $1100, respectively, and for Washington DC, $470,000 and $2800, respectively. These figures are based on the cost of renting and rental insurance. However, home ownership was based on:
“…mortgage principal and interest, property taxes, hazard insurance, closing costs at time of purchase and ongoing HOA dues and private mortgage insurance, where applicable. Total costs of homeownership include an offset for the tax advantages of homeownership, including mortgage interest, property tax and closing cost deductions.”
It should also be noted that these prices were based on averages of two bedroom apartments, condos and townhomes listed on Trulia.com and that larger three or four bedroom properties could be significantly different. However, it is another guide that may be of help for those looking to enter the property market right now.
The trend into the future may well see the prices of homes start to rise and this too will affect property prices. Rental prices are also artificially high at present as many former property owners (those who lost their homes during the economic crisis) have now entered the property market. Unfortunately, until many of these people rebuild their credit scores and confidence and re-enter the ownership market, rental prices will stay high.
Maryland is one such area where rental prices are soaring while property prices have dropped. Buying now could be a sensible decision.
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