Boston Real Estate for Sale

Boston Condos for Sale and Apartments for Rent

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Boston Condos – Buy or Rent?

Homeownership makes people happy.

This is not just a Boston real estate broker telling you this.

Study after study shows that homeownership positively affects a person’s life in more ways than financial security.

Below is a report from the NATIONAL ASSOCIATION OF REALTORS® research division, article, “Social Benefits of Homeownership and Stable Housing.

Rohe and Stegman found that low-income people who recently became homeowners reported
higher life satisfaction, higher self-esteem, and higher perceived control over their lives. 26
But the authors cautioned on the interpretation of the causation since residential stability was not controlled for. Similarly, Rossi and Weber concluded that homeowners report higher self-esteem and happiness than renters. 27 For example, homeowners are more likely to believe that they can do things as well as anyone else, and they report higher self-ratings on their physical health even after controlling for age and socioeconomic factors. In addition to being more satisfied with their own personal situation than renters, homeowners also enjoy better physical and psychological health. 28 Another study showed that renters who become homeowners not only experience a significant increase in housing satisfaction but also obtain a higher satisfaction even in the same home in which they resided as renters. 29

26 Rohe, W. and R. Stegman. 1994. “The Effects of Homeownership on Self Esteem, Perceived Control, and Life
Satisfaction of Low Income People,” Journal of the American Planning Association, 60(2), pp. 173-84.
27 Rossi, P. and E. Weber. 1996. “The Social Benefits of Homeownership: Empirical Evidence from National
Surveys,” Housing Policy Debate, 7, pp. 1-15.
28 Rohe, Willam M., Shannon Van Zandt and George McCarthy 2001. The Social Benefits and Costs of
Homeownership: A Critical Assessment of the Research. Low-Income Homeownership Working Paper Series
LIHO-01.12, Joint Center for Housing Studies of Harvard University.
29 Luis Diaz-Serrano. Disentangling the housing satisfaction puzzle: Does homeownership really matter? Journal of
Economic Psychology. Amsterdam: Oct 2009. Vol. 30, Iss. 5; pg. 745

Buy a Boston Condo and Stay for Some Time

When you have all in order—positive debt-to-income ratio, consistent income for two years, and savings for a down payment—it might be tempting to start house hunting in earnest. But first, make sure you want to stay put for a while. If you buy and sell too soon, it can hurt you financially. Every year we put out this rent vs buy report in Portland and include a calculation of how long it takes before you’re financially better off owning than renting. This length of time ensures equity building and prevents the loss that comes from selling too soon.

This time last year, we reported a Bostonian was better off financially after three years and one month of owning a home than a renter.

Rent an Apartment Vs. Buy a Condo in Boston 2022

In 2022, a Bostonian is better off owning than renting financially, after three years and six months of homeownership. This rent vs. buy formula is determined by current mortgage rates (including other costs of ownership), average local home prices, and average local rental rates.

The time it takes to be better off with homeownership could increase a little this year as mortgage rates are predicted to rise in 2022 to 4%.

Last year the rate hit a crazy low of 2.65%, which helped the formula.

Also, interest rates are still low, but they’re expected to increase from the current 3.22% for a 30-year fixed-rate mortgage to 4% by end of 2022.

Boston Beacon Hill apartment rental rates were trending down for a few years (2019-2020) but have started to climb again in 2022.

Home Equity is the Answer to Financial Security

In the end, equity is the answer. Buying a Boston condo is still your best bet over renting a Boston Beacon Hill apartment in 2022. And timing is key. Whether you’re ready to buy now or whether you need a couple more years to get your finances in order, keep your sights set on owning a Boston condo. It is proven to increase financial security and well-being over time. Otherwise, your hard-earned money will line the pockets of your landlord, rather than your own. Home equity is like a personal savings account, historically the largest and best investment any of us can make in our lifetimes.

If you’re ready to buy now, or if you have questions about buying a home in the future, please call one of our Boston condo for sale agents today at 617-720-5454 or text/cell 617-595-3712

Boston condos for sale
Boston condos for sale in 2022
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Updated: Boston Real Estate Blog 2022

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boston-condos-buy-or-rent

Today’s Wall Street Journal has an interesting article entitled: “Renters Lose Edge on Homeowners” subtitle “Cost Gap returns to Historical Norms in Some Markets as Home Prices Drop.”

The article is about how the relative cost of owning versus renting is swinging back in favor of homeownership. So here’s my thought or question, does it make more economic sense to buy a Boston condo or to rent one. I’m asking this question in very broad terms, I understand many factors would be involved as it pertains to the buyer ect. But lets say it was you. Based on the example below which would make more economic sense for you, buy or rent?

Beacon Hill had two recent sales:

One was a studio at 9 Willow Street that sold for $157,000 and would rent for approx $1,400.00 per month.

The other was a two bedroom at 286 Cambridge Street that sold for $320,000 and would rent for $2,100.00 per month.

Which would make more financial sense for you to buy or to rent either one of those properties.

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