If you can pay the average apartment rent in Charlotte, you should be able to make the payments on the three-bedroom, two-bath home at 7527 Woodstream Drive in Starmount.
You might like it. The sale listing at Carolinahome.com says it also offers an office and a bonus room in 1,777 square feet, and is within walking distance of the light rail.
It’s on the market for $200,000, listed by Re/Max Metro Realty.
The average apartment rent in Charlotte is now $1,000 per month – and, it turns out, $1,000 a month will cover the principal, interest, taxes and insurance on a home of about $200,000 with a 20 percent down payment.
The Observer’s Ely Portillo wrote last month that the average rent here had hit $1,000, according to a semiannual report from Real Data, up from $938 in March.
That’s eye-catching, and also is a nice, round number that invites the rent vs. own comparison.
Brandon Lawn, senior mortgage banker with Lawn & Mullinix, ran some rough figures. With 20 percent – or $40,000 – down payment on a $200,000 house, the loan amount would be $160,000. At 4 percent interest for 30 years, the principal and interest would be $763 a month.
The interest rate would depend on your credit history, of course, but Lawn said 4 percent is typical, even conservative.
He added $50 per month for insurance, and $150 monthly for taxes. “That would bring your monthly payment to $963,” he said.
Hey, you come out $37 ahead every month if you buy the house!
Seriously, of course, this is all hypothetical. Deciding whether to rent or buy is not simply a matter of running numbers. All sorts of other factors go into the equation. Each family comes to its own decision, based on its particular needs and resources.
That $40,000 down payment is a real hurdle.
On the other hand, your rent payment isn’t deductible at tax time. Lawn said $533 of his hypothetical payment would be deductible interest. Each family’s tax situation is unique, but that’s real money, too.
Don’t think that 1963 home in Starmount is for you? Here are a couple more that you might like, courtesy of Carolina Multiple Listing Services:
The four-bedroom home at 7815 Belchester Circle in Bradfield Farms is on the market for $200,000. It features new carpet, new appliances, new roof and water heater. The neighborhood offers swimming pool, tennis courts and a clubhouse.
The house at 15521 Normans Landing Drive in Hamilton Lakes has just been reduced to $200,000. It’s move-in ready, according to the listing, with new carpet and paint and a large island in the kitchen. There’s an upstairs laundry room and gas fireplace in the family room. It has three bedrooms and three baths. At 2,249 square feet, it’s the largest of the homes featured here.
Allen Norwood: email@example.com