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Abberly Green Apartments
117 Abberly Green Boulevard
Mooresville, NC 28117
Rent vs Buy a Home
HHHunt feels that as a responsible housing provider our residents should be educated about the benefits of renting their home as well as the benefits and risks of home ownership.
In recent months, the housing market, interest rates and the economy have been the focus of many news stories and are key issues in the political arena. Consumers have been inundated for years with visions of the American Dream and why homeownership is a great investment. As seen with the recent housing crisis, homeownership may not be right for everyone.
Many do not realize the real financial and practical advantages HHHunt residents experience every year when they decide to rent an apartment home at one of our communities.
We invite our residents to request a full copy of the Dont Buy the Myths-Renting Can Be A Smart Investment brochure created by the National Multi Housing Council and the National Apartment Association from a member of our Leasing Team.
In addition to the information contained in this website, please visit our virtual library with links to recent articles outlining the benefits of renting vs. buying. For more information about the apartment industry and articles related to renting vs. buying please visit www.nmhc.org or www.naahq.org.
Myths About Home Ownership
HHHunt understands that many make a decision to buy a house partially because of lifestyle issues – having a yard for a pet or more space to spread out are important quality of life considerations. However, homeownership solely for the sake of building personal wealth is not necessarily a sound decision.
Below are several myths about homeownership and the contrasting reality.
Myth #1 - Purchasing a home will provide a huge tax break.
The Reality – Tax advantages for many homeowners may not exist and in some cases may be nominal. Consider the following:
Myth #2 - Paying rent is throwing away money especially when a mortgage is less expensive.
The Reality – There are great benefits to home ownership for most people, however there are certain situations when renting is financially beneficial. Additionally, many online “Rent vs. Buy” calculators that promote home ownership and show the financial advantages of buying versus renting are flawed and misleading. Consider the following:
Myth #3 - No more rent increases!
The Reality – It is true with a fixed mortgage rate your actual mortgage payment itself will stay constant, but you may experience increases in property taxes and insurance. While rent increases do occur, you may find they are less than the other rising costs of home ownership. Consider the following statistics:
Myth #4 - Buying a home is a great investment.
The Reality – “Homeownership may not be the best place to get a strong return, especially if you look at the average home price appreciation of other assets. Putting all of your money in a house is like putting all your wealth in a single stock in the stock market. It’s a risky financial strategy.” Consider this:
Myth #5 - When the interest rates are low, buying is the smartest decision
The Reality – The housing market operates similarly to other industries in that supply and demand control the price.
Is Homeownership for You?
There are many questions that you should ask yourself prior to making the decision to buy.
✓ Do I need a garage?
✓ Do I need a yard for pets or children?
✓ Do I like to garden?
✓ Do I want recreational facilities such as a pool, tennis courts, etc…?
✓ Do I like to fix things?
✓ Do I plan to move or accept new employment soon?
✓ How close to shopping, retail and restaurants do I want to be?
✓ How far from work am I willing to be?
✓ Do I live paycheck to paycheck?
For those who desire a yard, a garden or a lot of space (over 1500 square feet) a house may be a better choice.
However, since HHHunt can pool the resources of the organization and purchase prime real estate, those who value convenience to shopping and restaurants, a short commute to work or superior school districts may be better off renting a home at HHHunt.
Those who value flexibility in their housing and employment options and those who enjoy access recreational facilities such as fitness facilities, pools, tennis courts and social events may also be better suited to renting a home.
APARTMENT LIVING IS A GREAT CHOICE FOR:
HHHunt employs a skilled staff to deal with any and all issues that may arise. From the Custodial Team who wipes down doors and picks up litter to Service Team Members who are plumbers, electricians, HVAC technicians and carpenters rolled into one, every maintenance request is handled promptly and professionally. This translates into a clean, well-maintained home with virtually no effort on your part and no additional cost.
The time savings an HHHunt resident realizes by having no maintenance responsibilities is compounded by the flexibility offered by apartment living.
As the employment market rebounds, there are many job new opportunities being created. HHHunt residents are positioned so that they may take advantage of new employment opportunities without having to worry about the time and expense of selling a house.
Preparing for Homeownership
If you have made the decision that homeownership is for you based upon your unique situation and your lifestyle, HHHunt recommends that you:
1. If you have never purchased a home, attend a home-buying or mortgage seminar. These sessions are offered free by many mortgage brokers and realtors to educate you about the process.
2. Find out your credit rating. Is it good enough to qualify for favorable terms for a mortgage?
3. Review your financial position.
(b) Do you have enough available cash to pay the closing costs? This is typically $3000-$5000 for a new loan.
(c) What is the maximum payment that you can afford? This figure should include the mortgage, insurance and taxes as well as Homeowner or Condo Association dues, at minimum.
(d) Are you prepared for higher utility costs? Average utility bills in a house are sometimes double what you would pay in an apartment.
(e) Do you have enough extra funds available to furnish and decorate your new home or will you have to go into debt to afford these items? If so, incorporate the additional payments into your monthly budget.
4. Pre-qualify or get pre-approved for a mortgage before beginning the search for your new home. Often, sellers will be more willing to accept the offer of someone who has secured financing rather than one who has not.
5. Narrow down the area, the type of house that you want and make a wish list. Do you want a two-story or ranch house, a condo or a house with a yard? Is a garage important? A fireplace?
6. Find a realtor in your area that you trust. Shop around and solicit referrals from friends and family.
7. Be patient. The search for a home can be stressful and there are many choices in the market. Make sure that the home you buy is the right one because you will be making a long-term commitment.
8. Once you have found a home to purchase, find a reputable home inspector. This inspection is to find any repairs, structural issues and/or safety problems that may exist. In addition, a termite inspection and, in some areas, a radon inspection should be performed.
Be sure that the inspection is comprehensive and don’t be afraid to ask for repairs from the seller, this is the only chance that you will have! Once you close on the home, the expense of any repairs will be all yours.
The Risks of Homeownership
Purchasing a new home is a long-term commitment and is not without risk, both financial and personal.
Most responsible lenders and realtors will advise homebuyers of the risks of homeownership as a means of accumulating wealth and caution consumers about being prepared for homeownership.
For more information about the risks associated with homeownership, visit:
Glossary of Terms
HHHunt strives to ensure that before someone makes a decision to purchase a home they are well-versed in the terminology. As a resource for those who desire to purchase a home, please find below the most common mortgage terms with simple definitions.
Adjustable-rate mortgage (ARM)
Annual percentage rate (APR)
Closing cost item
Common area assessments
Earnest money deposit
Fixed-rate mortgage (FRM)
Home equity line of credit
Homeowner's warranty (HOW)
The relationship between the principal balance of the mortgage and the appraised value (or sales price if it is lower) of the property. For example, a $100,000 home with an $80,000 mortgage has a LTV percentage of 80 percent.
Mortgage insurance premium (MIP)
Principal, interest, taxes and insurance (PITI)
Private mortgage insurance (MI)
PUD (Planned Unit Development)
Purchase and sale agreement
Real estate agent
Replacement reserve fund
Secondary mortgage market
For more information, please visit the following link: http://www.fanniemae.com/homebuyers/glossary.html