Not too surprisingly, New York City remained the top renters' market as two bedrooms in New York City come in at a whopping $1.3-1.4 million and rent for an average of $3,500-4,000 a month, where foreclosure slammed cities like Las Vegas are a discount buyers dream as you can purchase homes for less $100,000, while rents can be $1,000.
When we look at our local market of Morristown and Morris Township, according the multiple listing service (MLS) the average two-bedroom home in Morristown and Morris Township sold for roughly $350,000 over the last year. To get a local calculation we will need to make some assumptions such as $8,000 of taxes for Morristown. Morristown taxes are higher than Morris Township where they would be closer to $6,000 so the rent to buy ratio will be more favorable to buy in Morris Township. We will also assume the buyer will put 20% down at a 5% interest rate and assume $600 a year for insurance. All told the mortgage to buy would come in at about $2,200 a month in Morristown or $2,050 for Morris Township, which maintains lower taxes.
For December, Zillow showed that the average rental was $2,200 a month, meaning that instead of paying your landlord a Morristown renter could by his/her own place. An average renter in Morris Township could actually save money. So first-time buyers consider this, right now it is one of the best times to buy... or to be a landlord.
Keller Williams Towne Square Realty
Cell: (908) 303-0926; Office: 908-766-0085; Fax: 908-766-2254
24 Claremont Road, Bernardsville , NJ 07924
