Friday, December 20, 2013

Housing Comps 2014

Each November I look at the old apartment complex that I used to live in and I find out what a one bedroom unit would rent for had I not purchased my condo. 

Since it's been 4 years since I purchased my condo... and i'm not 100% sure I would be still living in that same apartment complex if I hadn't purchased the condo... 

I decided to run some numbers for the two apartment complexes right by my current residence in addition to the comp apartment I had been using to make sure I still had a ball park idea on local rent prices. 

  • Complex A: 
    • 726 square feet. $1,295-$1,385 a month. $600 Deposit. 
    • $50 a month in pet rent, $500 pet security deposit. 
  • Complex B:
    •  780 square feet. $1,535.00 a month. $600 Deposit. 
    • $50 a month in pet rent, $500 pet security deposit.
  • The Comp Apartment:
    • 672 square feet. $1285-1495 a month. $400 Deposit (already paid)
    • $35 a month in pet rent, $400 security deposit (already paid)

In terms of livability, both units have more square footage then the comp apartment and are closer to my condo's actual size... but the comp apartment does have a one car garage that we could toss a few boxes in for storage so I think it still evens out since the pricier complex B apartment has a garage and is too steep for our pocket books... If we moved, Complex A would cost us $300 more in security deposits and $25 more a month in total rent... assuming our friends help us move again. 

Since everything seems to be more expensive, we will continue to stay were its cheaper,and just extend our lease for another year. Since this will be year 3 in the same unit, our $400 security deposit will be returned to us when we leave. Last year our unit rented for $1,240.00 and this year that unit rents for $1,285.00 a month. (A 3.6% price increase.)

We will also assume our now 2 year old washer and dryer (that we hypothetically purchased at the beginning of in 2012) will continue to function in 2014.

Costs Associated with Apartment for 2014
We don't include electric bills below since we'd have to pay for those at either place, but my HOA fee includes water, gas, and trash so those will be listed in the apartment costs.

Monthly: $1,441.00, Annual: $17,292
  • Trash: $15 a month
  • Water: $60 a month
  • Gas: $35 a month
  • Rent: $1,285.00 a month
  • Renters Insurance: $11.00 a month
  • Pet Rent: $35 a month
Costs Associated with Condo for 2013
If we make any additional principle payments to our mortgage, we count it as an expense. Monthly: $1,082.33 | Annual: $12,987.96
  • Mortgage: $669.96 a month (P&I)
  • HOA: $270.00 a month.
  • Property Taxes: $102.03 a month.
  • Earthquake and Homeowners Insurance ($187 + $297) a year or $40.34 a month.
Our condo on average, saves us $358.67 a month!
$358.67 more each month, in our pockets... or to pay down our mortgage with.... or to use to fix up our home before we even break even on what it would cost us to rent an apartment. Yup, I'd say it was a smart decision to but my condo when I did! 

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