In every one of my blog posts this year, I have shared with you my thoughts on mortgage rates. High interest rates have been in the headline news for the past two years. We are all trying to navigate this current economic environment to ensure we make the best financial decisions.
When it comes to making a decision on buying a home, the higher mortgage rates are a significant factor in the decision-making process. If you must move into a new home, you may feel caught in choosing between buying a house or leasing a condo.
In this blog post, I will shed some light on the advantages of leasing a condo, given the current interest rate scenario.
Benefits of Leasing with High-Interest Rates
1. Predictable Monthly Expenses: It’s obvious that when you sign a lease, you pay that amount over the lease period. What’s advantageous about predictable expenses is that you can budget appropriately in the event you are planning on purchasing a home in the future.
2. Mitigate risk to property value declines: While I believe that Atlanta is less vulnerable than other big cities with high-interest rates, there’s a potential risk for property values to decline. As a lessee, you avoid this risk in the short term.
3. Flexibility to Relocate: With a potential recession looming, there is the possibility of economic volatility in the short term, which could lead to job changes or lifestyle changes. Leasing gives you short-term flexibility with the liberty to move as life demands.
As of October in Atlanta, the average rent payment was $1,564 per month. Where as a monthly mortgage payment on a home with a median sales price of $419,900 and 20% down at an 8.6% interest rate is $3,168 (30-year fixed, including taxes and fees).
The above data can provide some good perspective if you are working within a budget over the next year and attempting to choose between waiting to buy or holding out for interest rates to abate.
Atlanta is full of some amazing neighborhoods. The silver lining of high interest rates is that they may force your hand to lease in the short term. This gives you an opportunity to test out a neighborhood in Atlanta before committing to making a purchase there.
There are many great lease options available right now if you know where to look. For example, I have several condos available for lease at the Mayfair, like Unit 2609 that just became available, which is a renovated 1 bed 1 bath.
I also have some great ultra-modern lofts available, like 845 Spring Street NW Loft 315, which is a 1 bed 2 bath.
Both of these units are in the heart of midtown and allow you to get a feel for one of Atlanta’s best urban neighborhoods.
Navigating a high interest rate environment can be challenging. However, understanding your options and the benefits of choices like leasing condos can offer clarity. While homeownership has its merits, the current economic climate showcases some of the undeniable advantages of leasing. Likewise, leasing provides you with a great opportunity to know your neighborhood before making a commitment.
If are ready to lease or buy a home in Atlanta, please do not hesitate to contact me.