jeremy borger [blog]

The search for somewhere to live downtown continue…

The search for somewhere to live downtown continues…

But now I am considering RENTING instead of buying. Why? Well, I’ll tell you!

Someone mentioned that I should check out The Avenue District. I’ve looked at their plan before online, but it’s not going to open until sometime in 2007 and I have to move in March. I always had the thought, “Well, if I want to move there after they open, then I’ll just sell my place and move there.”

But it got me thinking… I’ve never lived downtown. I THINK I’ll like it. But what if I don’t? Maybe it would be safer renting a place than buying one. And then I started running the numbers… For the place that I was looking at purchasing in the Grand Arcade, the total monthly cost of principle and interest, taxes, maintenance fee and parking would be $1,270/month. Plus about $2,300 in closing costs.

Now take a rental place such as The Bingham. It’s in the warehouse district, like Grand Arcade, so the neighborhood/atmosphere is the same. Parking is included. (and it’s attached, unlike public parking with Grand Arcade) The one bedroom will probably be at least as nice as what I’m looking at in the Grand Arcade, although I haven’t checked it out yet. But let’s say they’re equal. The Bingham is $775/month. And no closing costs. That’s almost $500/month difference!

I understand there’s benefits to owning. You have appreciation. But I’d probably only be there 5-10 years. (or less than two years if I move to The Avenue District) And the interest portion of my payment would be tax deductable. But still… $500/month is A LOT to me right now. So is ownership worth it?