Were you renting in Boston your whole life through your university years? Are you now a working professional in the Boston Area? Entering the Boston area’s housing market can seem next to impossible.
High prices, many great areas, and income limitations. Lots to consider! In this blog we discuss some things to think about.
Favorable Areas to Buy
According to the Greater Boston Association of Realtors, the median sales price for a house in the region was $605,000 as of January 2020, and the median sales price for a condo was $577,500, according to the Greater Boston Association of Realtors. The figures were much higher, too, in Boston and downtown Boston, respectively. But do not worry, there are plenty of homes available that are below the average!
What is considered a favorable area to buy? Well, there is no straight answer. It all depends on your needs! Think, for example, about the following;
Do you need something that is close to work, or are you willing to commute?
If you have children, what schools are in the area?
What amenities (e.g., gyms, groceries, coffee shops) are in the area that fits your lifestyle?
Do you prefer noisy, big city living, or do you love the quiet suburbs of Boston?
Are they planning to rent your property out after five years?
Benefits of Owning vs. Renting
Both renting and owning have their benefits. When it comes to renting, you have more flexibility in terms of where you live, and at the end of each lease, you would be able to switch to something else. However, in the long run, owning would be the most cost-effective. Here is a summary of all the benefits:
Fixed Monthly Payments
Once the down payment has been paid, your monthly expenses on the mortgage will be relatively fixed for a couple of years. However, rental prices may have by season and tend to increase in the future, especially in Boston as the city ranks third of the most expensive cities to live in the United States.
A studio apartment in Boston is on average $2,500 to rent, while a 1-bedroom is on average $3,200*. So you can own a 1-bedroom condo in the suburbs of Boston for just $1,500 a month**? It is possible! Considering the down payment, in the long run, you would be able to spend less money.
As a homeowner, you have the total freedom to do and please with your own home! New kitchen? Sure! Blue walls? Go for it! You may not be able to personalize or renovate your rental apartment. Plus, you move to a different unit every year, you might have to buy or throw out some furniture due to size limitations.
If you are consistently making mortgage payments on time, you demonstrate that you essentially are a good borrower, which could influence your credit score. In addition, it can help you build your credits, which can help you with future investments like buying a car. Finally, homeownership is an excellent investment as you can potentially sell it for a profit, rent it out, and eventually live mortgage-free.
First Time Home Buyer Programs
What about the initial investment, though? Afraid you do not have enough money?
Luckily, there are various programs that first-time homebuyers can seize on to mitigate these high barriers to entry the Greater Boston’s property ladder. In most programs, you can get a special rate or lower down payment.
One example would be The Commonwealth of Massachusetts. They offer a variety of programs to help potential homeowners navigate the home buying process. There are also many mortgage brokers and banks that have first time home buyer programs that you can consider.
We are offering free one-on-one consulting about first-time homebuyers programs for first-time homebuyers to make sure you can finance your Boston dream home.
How can we at East Coast Realty help?
Owning a home is a financial dedication that requires you to plan and reflect on where your life is headed. But, first, you need to know your budget and decide whether Boston will be more of a long-term commitment.
We can help first-time buyers go through the whole buying cycle. From your first question to the actual move-in day. We can also provide professional property management if you need to relocate in the future. Are you thinking of eventually renting out your property? We can help you with any management services needed to make your dream come true.
We can help them manage the property and rent it out. Contact one of your agents today: https://www.eastcoastrealty.com/contact
* The data provided reflects the prices listed on a database managed by local Boston brokerages and landlords for 2021.
**Estimated monthly mortgage payments are based on condos between $200,000 - 300,000. Payments vary by property and mortgage.