2019 housing Comps - 2 bedroom

Each year we pick a benchmark property to compare the cost of living difference between owning and renting an apartment in our general area. As I mentioned in my last post, we have been hypothetically using my old apartment complex for our base numbers for 2018, and a number of years (See Housing Comps - 2 bedroom).

Being a natural "shopper" I browse the internet each year in search for comparable housing situations just in case something better comes our way.

The current hypothetical unit from last year is now renting for $2015- $2,125 a month, plus a $35 pet rent. Thankfully our dog is not on the restricted breeds list. Now, this apartment is not in the city we live in, but it is commutable distance to all of our jobs and its been a deal for a while year after year. But I pulled some local numbers too from the city we currently live in:

• Option B (closest distance wise to our current home) $2,161 + $50 pet rent 
• ($600 security, $500 pet deposit)
• Option C: $2,035 - 2510 + $50 pet rent 
• ($600 security, plus $500 pet deposit)
• Option D: $2,030 + $50 pet rent 
• ($500 security, $500 pet deposit)

Additionally, I actually found two units available for rent in our complex. Since I like to talk full disclosure, the rent for these two places was $1,700 and $1,875 a month, with the pricier unit closer to our actual living conditions than the cheaper one. Both of these units are owned by private individuals, have no AC, are on the top floor, and have a no pets policy. I'm going to be honest here.... we would not actually rent here.

• Parking is not ideal. No carports, or garages
• There are no amenities (pool, gym, etc)
• There is no AC
• Rental units have no upgrades and are stuck with original infrastructure, including backwards windows which are not efficient and do nothing for sounds. 

You might ask why we would OWN a place we wouldn't rent:

• It is within our budget and will ultimately makes us enough $$$ to afford a detached home. 
• As the OWNERS we can modify the floor plan to suit our needs (AKA built ins for more space, tearing out closets, fixing flooring, replacing appliances, etc.)... and we can improve the property like doors and windows for security, more comfortable temps and less noise from neighbors.... 

All of that combined makes the short commute to my work, proximity to a public park, etc worth it.

• Even more so, when I hated our bathroom shower even after re-surfacing the tub, we replaced it (blog to come on that project). Hubs doesn't have to duck to shower now at a full 6 foot 5 (find an apartment that will do that), and I can soak in a deeper tub at the end of a long day.
• another big thing was our windows and doors were horrible (backwards with jams on the doors that didn't seal properly). The front door didn't actually close well in the jam, and the previous landlord wouldn't even fix the heater... The house was cold, the sound from the neighbors was horrible.... so we did something about it. New windows not only provided temperature regulation, but now I can't hear the kids running around outside, and our home is well insulated now and not freezing in winter, or hot in the summer since they also reflect the heat from coming into our home...

When I hear the renter horror stories from those who deal with an individual landlord, I want to run for the hills and to the nearest apartment complex. So with that all being said, no we wouldn't rent here, but I wanted to include those numbers as a reference point because even those rates are higher than last year.

To make a long story shorter, we are going to keep using my "old" apartment as a baseline for our comparison. The $2,015 unit was right along a major 4 lane road, the other 2 "open units" were for $2,125.00, but i'm using the cheapest option there for our base.

Costs Associated with Apartment 

We don't include electric bills below since we'd have to pay for those at either place and both units had Electric stoves, but my HOA fee includes water, gas, and trash so those will be listed in the apartment costs. 

Security and Pet deposits were already paid in hypothetical 2017 ($400.00 + Pet Deposit $400.00), and these are refundable if you live there for 2 years, so if we ever "move apartments" we get this cash back. We will also assume the Washer and Dryer we "hypothetically bought" in

I also slightly increased the utility bills. My first estimate was for 1 person, based on 8+ years ago pricing... and we are a family of three. My numbers will likely be much lower than in reality, but I needed to adjust them somewhat.

We will also assume our now 6 year old washer and dryer (that we hypothetically purchased at the beginning of in 2012) will continue to function, thus eliminating the need for the coin operated laundry rooms at the apartment complex.

Monthly:

• Trash: $20 a month
• Water: $100 a month
• Gas: $50 a month
• Rent: $2,015 a month
• Renters Insurance: $15 a month
• Pet Rent: $35 a month

Total: $2,235.00 x 12 months = $26,820.00

Costs Associated with Apartment 

Monthly:

• Mortgage: $764.00
• HOA: $367.50
• Property Taxes: $285.00 
• Homeowners & Earthquake Insurance: $51

Total: $1,467.50 x 12 months = $17,610.00

Owning my condo is $9,210.00 cheaper than renting, and that's before the almost $3,000 in equity I gain through just making the minimum on my payments.

• How is my mortgage so cheap for a high cost of living area? Well, I bought a dump of a condo at near the bottom of the market 10 years ago, renovated it, and held onto it for 8 years before I SOLD IT.  We then turned around and dropped $160,000 from the sale of the first place and used it as our down payment to help us buy our new fixer-upper. So we are living and renovating it bit by bit and doing what we can ourselves while also paying others for their expertise since we have a three year old along for the ride.

We have spent a lot more on repairs and remodel since we bought the unit, but I promise, updates will follow.