Trying to figure out what the best financial option is for your living situation? If you live in Seattle or other major areas in Washington State, some statistics may help you put into better perspective how you should handle your future living situation.
The first nugget of information is from an article by MSN 5 Places Where Renting Beats Owning. Seattle was one of the lucky five stated in the article.
A recent study done by Marcus & Millchap discovered that the average monthly rents in Seattle are $377 lower than mortgage payments. Using a suburban example in the Green Lake area, we can use a 1,800 sq. ft. home that rents for $1,795 a month. If the individual(s) decides to purchase the home with a 10% down, 30-year fixed mortgage at a 3.7% interest rate, they would be paying $2,130/month.
Homeowner’s should consider property taxes, insurance, maintenance, and other expenses that come with homeownership as well. We can conclude that renting in Seattle is the CHOICE way of living. Or at least until you are financially ready to purchase.
What if I am currently a homeowner?
The second nugget of information is from an article by Business Insider 12 Cities Where Homeowners Are Deep Underwater. Again, Seattle happened to be one of the lucky twelve.
Seattle, Washington
Negative Equity Share: 37.8%
Total Amount In Negative Equity: $23.0 billion
Delinquency Rate: 10.3%
37.6% of underwater homeowners owe 20 percent or less, while 9.1% of underwater homeowners owe more than double what their home is worth.
Negative equity means the borrower owes more on their mortgage(s) than their home is worth which is also known as “Underwater.”
Why are short sales so popular especially in Seattle and other places in Washington State? Because it is an opportunity to walk away from a home that is probably deep underwater, rebuild credit and ultimately your financial wellbeing.
Hope this helps
Peter
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