Should you rent or buy a home in Mount Laurel? Let’s look at some real word numbers and see how they shake out. Often the answer to the question “why rent in mount laurel” you will hear “because I can’t afford to buy a home in Mount Laurel”. Hmm, I wonder why they feel that is the case. Have you ever, as a renter, really thought about where your money is going? If you have not, let me enlighten you a bit. Essentially your rent, in most cases, is paying the owners mortgage.
So the average 3 bedroom rent in Mount Laurel over the last 6 months has rented for over $1,700 a month. This does not include any utilities or other smalls fees a landlord may require. Majority of these rentals are found in one of the many desirable town home and condo complexes in town. As a landlord these properties are so easily rented because of the same draw and desire a buyer has to the Mount Laurel area: stellar schools, easy access to major commuting roads, location to shopping and entertainment, and an overall wonderful place to live.
So when you dig a little deeper and look at the average cost to buy a home in Mount Laurel (same 3 bedroom townhouse) you will find that average final sales price is around $238,133. Right now, with rates still low this is an affordable monthly option. In fact, if you were to take that sales price on a 30 year mortgage with no money down and an interest rate of 4.25% your monthly mortgage fee would be about $1,171.
$1,171 plus taxes and insurance a month verses $1,700 in monthly rental fees.
So it brings us to an interesting question…why rent your home when you could probably truly afford to buy a home in Mount Laurel.