Abberly West Ashley Apartment Homes

3100 Ashley Town Center Drive, Charleston, SC 29414
Call: 844-502-5938 Email UsAbberlyWestAshley.PropertySite.HHHunt@aptleasing.info View Map

Opens: Monday-Friday: 9A-6P | Saturday: 10A-5P | Sunday: Closed

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Apartments Charleston SC Blog

When Renting an Apartment in Charleston, SC is a Smart Decision

When Renting an Apartment in Charleston, SC is a Smart Decision

Joseph Coupal - Wednesday, November 23, 2016

Conventional wisdom suggests buying a home makes more financial sense than renting. In many cases, this is true. However, renting is sometimes a smarter approach than buying.

All of the options and circumstances need to be weighed before jumping in. Making a major purchase requires doing your homework. The following are some reasons why renting can be more beneficial than buying.

  • You are young. The typical first-time home buyer is 31-years-old. People who are younger than that and uncertain about their futures should not feel pressured into buying simply because it is presumed to be the adult thing to do. Renting and feeling your financial way, which can include seeing how a job pans out or where your budget lies after paying off debts, might make more financial sense than buying.
  • The price-to-rent ratio is too high. Buying may seem like a wise idea, but it could be causing you to spend more than necessary, particularly if you check the price-to-rent ratio and find homes in your area are not fairly priced. Figuring a P/R ratio includes finding two similar houses (or condos or apartments) where one is for sale and the other is for rent. Divide the sale price of the first place by the annual rent for the second. The end result is the P/R ratio. The higher the P/R ratio, the more sense it makes to rent instead of buy.
  • Home prices continue to rise. Some people find themselves being priced out of certain neighborhoods or cities. RealtyTrac recently analyzed median wage and home-price growth between 2012 and 2014, finding that while the typical worker’s earnings increased a meager 0.3% during the study period, median house prices were up by 17%. Wages have not recovered from the Great Recession as quickly as home prices have, and some people may need to rent out of necessity.
  • A market shortage makes it harder to find an affordable home. The number of homes available for sale in many areas of the country has fallen below the number that realtors say is required for the market to be in balance. Therefore, even when a home becomes available, demand drives the price up to where it may not be affordable or fiscally smart to purchase. In such instances, renting may be the best option.
  • You don’t meet the buying criteria. Don’t buy a home based on market conditions or pressure from others. Instead, buy when you’re financially ready. This means being out of debt; having between three and six months of expenses in an emergency fund; enough cash for a 10 to 20 percent down payment on a fixed mortgage; and when your mortgage payment will be no more than 25 percent of your monthly take-home pay.

Renting can be a smart move in many instances. Only when individuals are financially and emotionally ready to buy should they begin searching for their first homes.

For more information on apartments in Charleston, SC contact Abberly at West Ashley.

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The Daily Courier


Why Buying a Home is Not an Investment - Charleston, SC

Why Buying a Home is Not an Investment - Charleston, SC

Joseph Coupal - Thursday, November 17, 2016

Should you keep renting, or buy a home?

It's an age-old dilemma nearly every American adult wrestles with at some point. They wonder about paying rent when they could be investing in a home that will grow in value and potentially provide a nice return one day.

If that line of thinking sounds familiar, stop right there.

A number of crucial factors go into the rent-versus-buy equation — myriad calculators exist for just this purpose — but a house's potential return on investment shouldn't be your focus. In fact, you shouldn't think of it as an investment at all.

People get caught up in this notion of 'Oh, if I buy a house it's an investment, so I can do it at any time,' but it's not.

Housing is a consumption decision, not an investment decision. The amount you pay for housing should comport with your needs, goals, and budget, regardless of housing market trends and potential growth in home value.

If what you're spending each month on housing jumps when you move from renting to owning, that's not necessarily a wise financial move just because you're getting equity. You need to make sure the additional space and amenities you're consuming are worthwhile expenditures on their own merits, not for the theoretical payout they might afford later.

If you spend twice as much on a house, you're not making twice as big an investment, you're spending twice as much on housing. That's a mistaken way to approach it.

Let's say you time your local market correctly and home prices rise after you buy. If you decide to sell that home, you'll still need a place to live, and you're buying in that same market with expensive home prices unless you go back to renting.

Moreover, the process of buying and selling a house is expensive. The taxes, fees, and closing costs you'll pay when you buy and sell that home eat into any profits you reap.

Buying that house cheap and selling it once it's gotten expensive is an expensive way to make money, because the round trip cost to you is about 10%, so you take a huge hit.

If you want to make an investment in housing, you're better off doing it in the markets — such as buying shares in a real estate investment trust or an exchange-traded fund.

For buying your own home, just ensure it will match your needs for many years to come, independent of what happens in the markets.

For more information on apartments in Charleston, SC contact Abberly at West Ashley.

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Business Insider


Even Those with High Incomes Prefer to Rent – Charleston, SC

Even Those with High Incomes Prefer to Rent – Charleston, SC

Joseph Coupal - Friday, November 11, 2016

“Rent, don’t buy,” may be the new mantra among higher-income Americans. A study of U.S. Census Bureau data discovered much greater growth in renting versus buying among wealthy people.

Here’s a key set of numbers from the study: “From 2005 to 2015, the number of renter households who earn more than $150,000/year increased by 217 percent,” while there was only an 82 percent increase in the number of homeowner households within the same income bracket.

After the real estate crash in 2007 and 2008, many people switched from owning their own homes to renting, whether that was their plan or not. You might think richer people would see the opportunity and snap up properties at bargain prices that less well-off people either couldn’t afford or couldn’t qualify for. However, that doesn’t appear to be the case, based on the analysis of the census data. “We also noticed that every single year since 2009, the largest increase in U.S. renter households came from high-income earners,” the study concludes.

The numbers mentioned so far have been based on percentage increases, which can be misleading because total numbers may look different. But even absolute numbers show the same trend of high-income renters, especially in cities where renter increase rates are much higher than average.

Cities where rich renter numbers are growing the fastest include Memphis, Tennessee; Phoenix, Chicago, and Detroit, as well as Charlotte, North Carolina; Portland, Oregon; San Jose, California; Austin, Texas; and Fort Worth, Texas. New York City wasn’t among the top 10 states showing rich renter growth, but nonetheless has the largest absolute number of wealthy renters.

Nationwide, there are seven times more homeowners than renters in the upper-income bracket. Overall, renters account for more than a third of U.S. households, with most earning less than $50,000 annually. What the study found was signs of a shift among higher-income households in favor of renting urban luxury apartments rather than a house in the suburbs.

For more information on renting in Charleston, SC contact Abberly at West Ashley.

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yahoo.com/tech


Starter Homes Are a Big Mistake – Charleston, SC

Starter Homes Are a Big Mistake – Charleston, SC

Joseph Coupal - Wednesday, November 02, 2016

We came across a blog post on A Wealth of Common Sense by Ben Carlson of Ritholtz Wealth Management calling buying a starter home "one of the worst moves you can make financially as a younger person."

We had to know more.

A starter home is any home you don't plan on staying in for the long term.

Carlson, who's a married homeowner in his mid-30s, as well as a CFA Charterholder, watched many of his friends follow the traditional path: get married, buy a home for the time being, have kids, upgrade to a bigger, more permanent home. However, he saw that these starter homes were more expensive than the buyers planned, from making improvements up-front to extricating themselves from the property later.

When he ran the numbers, he realized that, generally, starter homes just don't make sense. For one thing, the bulk of your mortgage payments in those first years go directly to interest payments, meaning you haven't built much equity by the time you trade up.

The median house price is roughly $200,000, and for the sake of argument, let's say you don't put anything down. If you stayed there for five years with a 4% interest rate on a 30-year fixed mortgage, two-thirds of your payments go to interest costs alone. You don't build up a ton of equity.

The break-even point for a home tends to be between five and seven years, depending on where you live. If you're in the house for less than that time, you sink money into closing costs, property taxes, improvements, and even realtor fees when it's time to sell.

If you're going to buy a house, buy something you're going to stay in for seven to 10 years. Otherwise, those costs are going to eat up most of your equity.

Carlson isn't against buying a home overall. In fact, he's strongly in favor of it — if it's somewhere you intend to stay for at least a decade. Until then, though, don't look down on renting.

"I think for young people, renting is underrated," he said. "When you're young, renting gives you more options. People say they don't want to pay someone else's mortgage, but I think especially when you're young and not tied down, it gives you the ability to pick up and move to another city for a job — a little leeway. A house is much more expensive than people think. It's more than just a mortgage."

For more information on apartments in Charleston, SC, contact Abberly at West Ashley.

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Business Insider



Abberly West Ashley Apartment Homes

3100 Ashley Town Center Drive, Charleston, SC 29414

Call or Text: 844-502-5938
Email UsAbberlyWestAshley.PropertySite.HHHunt@aptleasing.info
View Map

Opens: Monday-Friday: 9A-6P | Saturday: 10A-5P | Sunday: Closed

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