There are many reasons why someone decides to rent or continues to rent in Boston, Somerville and Cambridge vs. buying a home, but often when I talk to clients or potential clients looking here are some the reason why they continue to rent vs buy when looking in Boston, Somerville, and Cambridge.
What many renters don’t understand or think about is if your paying rent $3,000 a month that is equal to $500,000 mortgage payment.
This blog will point out many of your reasons for not jumping into the home buying market is just not only inaccurate but silly to believe. Before I tackle buying here is a breakdown of average rents in Boston, Cambridge, and Somerville. The Rental Breakdown should help you realize buying can be an option.
The Average Renter stays in a rental for three years before they move. If you are still not sure where you will be in a year sign a lease for one year and if after that year your faced with the idea of signing another one year lease or moving to another apartment maybe while you look over your options you look at the market to buy vs. signing the rental agreement.
In Boston Mass, The Average Rent for 1 Bedroom is $2,797.000
2 Bedroom is $3,416.00
3 Bedroom is $4130.00
In Cambridge, The Average Rent for 1 Bedroom is $2740.000
2 Bedroom is $3,514.000
3 Bedroom is $4,395.00
Somerville, The Average Rent for 1 Bedroom is $2471.00
2 Bedroom is $3092.00
3 Bedroom is $3236.00
So let’s say you’re looking to Rent a home under 3,000 a month you could rent the following:
64 Gates Street unit 3 is 2 bed 1 baths located in South Boston with parking. Top Floor unit offering fully renovated kitchen with granite and stainless. Great natural light in the home Large Master Bedroom and the second bedroom are smaller but are big enough to fit a queen size bed. This Property is on market for $2800 a month.
40 Parkton units 2 in 3 bedroom unit 1 bath sits on a quiet street three blocks from Jamaica Pond. 40 Parkton offers an updated kitchen and 1.5 bathrooms with marble tile and high-quality fixtures. Stainless steel appliances offered in the Kitchen, and there is a front Balcony off living room. This Jamaica Pond home is on market for $3000 a month.
205 Richdale 11A in Porter Square 2 bed 1.5 new fridge, dishwasher and hardwood floors throughout. This home in Porter Square also comes with Washer and dryer in the unit along with central air and Central Heat. Richdale comes with one car garage parking No pets or smoking in the unit. Tenant is responsible for maintenance of small, private yard and brick patio. Close to parks, tennis courts, basketball court, community garden and Danehy Park. Richdale has also been freshly painted and ready for you to move in. the unit is on market for $2800 a month.
295 Harvard Street unit 1004 –Newly renovated two bedrooms available for you to see TODAY! Spacious unit is approximately 1,000 sq. ft. and offers two full bathrooms, ample storage, and an open concept living/dining area that suits a modern lifestyle. Bright U-shaped kitchen has a huge breakfast bar and stainless steel appliances. Large private balcony expands the living space and offers fantastic views of Cambridge and beyond. King size master suite has a bathroom with walk-in shower. The second bedroom can fit a queen-sized bed. Full second bath has a bathtub. The professionally managed building has an on-site gym, laundry room, and bike storage. Garage parking is available for $150/mo. Hot water is included in the rent. Fabulous location on a quiet side street is just 4/10 mi to the Red Line T in Central Square, 6/10 mi to Harvard University, and a couple blocks from Whole Foods Market, great restaurants, shops, and entertainment! Just move in and decorate! This Harvard Street Rental is on Market for $3000 a month.
All of these rental properties are great properties, but they have something in common with next set of properties I am about to mention they are all about equal if you were thinking about buying a property and equaling it to a monthly mortgage payment and in some cases if you bought you could be looking at less. If you were buying a home for $500,000 at the current interest rate of 4.27 on a 30 year fixed mortgage that would be roughly about the same if you were paying rent under $3,000 a month. So you could buy in Boston or Cambridge and pay about the same but in some cases not only build equity but also get more value and best of all you own it. You can create a home for how you want your home to be. You have control over your yearly expenses, which can allow you to save better for the future.
5 Oakdale St – Unit 3 2 bed 1 bath with parking offers a top floor home in a distinctive Mansard Victorian with Boston Skyline views! Could this be the one? High ceiling, exposed brick, wood flooring and great light make a warm and comfortable place to call home. The open and flexible layout offers about 900 square feet of living space and gives you space for two bedrooms, an office, and open kitchen-living-dining area. Lots of updates include a new boiler, water heater, and replacement windows. There are private laundry and lots of basement storage in addition to one parking space making this a complete package for anyone searching for that perfect spot in the middle of it all. Easy access to transportation, shopping, restaurants, gyms, green space, biking and walking paths, coffee shops, you name it, it is right outside your door. Oakdale is on Market for $499,000.
70 Bremen Street unit 205 In East Boston is a1 bed 1 bath with outdoor space and garage parking avail for additional purchase. Newly constructed residences located in the heart of Jeffries Point. This 5-story, elevator building, consisting of 4 floors of residential units. The ground floor provides for indoor parking space (single indoor parking space is available for purchase). CONDO FEE includes heat & hot water. 70 Bremen has been outfitted with the finishes that today’s discerning buyers seek. The beautifully laid out homes have been custom designed by the Duffy Design Group and feature Caesar stone waterfall counters, contrasting kitchen cabinets, Samsung stainless steel appliance package, in-unit washer and dryer, and beautifully tiled bath. Some of the amenities include central a/c, parking, and bicycle storage. 70 Bremen is located on the East Boston Greenway, steps to Maverick T Stop, min. to nearby parks, quick access to Logan Airport and major routes. This newly renovated home is on Market for $497,500.
609-611 Dorchester Avenue – Unit R2 2 bed 1 full bath with outdoor space located in South Boston. Sun filled Penthouse with gleaming hardwood floors throughout. Modern open kitchen boasting black granite counters, maple cabinetry and a fleet of stainless steel appliances. 2 generous bedrooms and a luxurious bath with jetted tub, separate tiled shower, and newer washer/dryer. Also featuring recently upgraded central air conditioning, ample on-street parking, and your own private rear porch. Just a stone’s throw from the Andrew Square T Station, along with being close to mass transit it is also close to some of the best restaurants, shopping, and nightlife. This Dorchester Avenue home is On Market for $499,900.
If you are looking for a 2 bed or larger under $500,000 you might be forced to rent a bit longer, but if you can do a one bedroom or two bedrooms in Cambridge or Somerville you do have some great options keeping you under budget of $3,000 a month for a 1 bed or larger which is again in line with the average rents in Cambridge and Somerville.
21 Oxford Avenue Unit A is a 2 bedroom 1 bath located in Strawberry Hill is about 797 Square feet of living space Bedrooms are a good size and living space area offers an open layout where the kitchen flows into the living room making it ideal for someone who wants to entertain their guests. It is the only 2 bedrooms in Cambridge on market under $500,000 and does come with 1 parking space. This Oxford Avenue home is On Market for $414,900.
94 Beacon Unit 33 is 1 bedroom 1 bath in Union Square of Somerville MA Comes with 1 parking spot. The condo does look like it needs some updating which is rare in this market to see a home on the market that needs some work, but if it was completely redone the price would be higher. Home is professionally managed and condo fees are low covering your basics like heat, hot water, master insurance, laundry, on-site maintenance, and snow removal, Elevator. On market for $450,000 and offers the smallest square footage at 596 square feet.
117 Heath St. – Unit 1 in Somerville offers a completely renovated space. Top-quality materials and smart home features like Wi-Fi thermostat and touchless electronic bathroom sink faucet. Heath Street offers Hardwood floors throughout, elegant decorative moldings in ceilings and walls and a Beautiful kitchen with granite counter-top, stainless steel appliances. The bathrooms, contemporary bathroom design with granite molding and glass door. There is an additional large room in the basement that could be used as a storage or exercise room. The maintenance-free back porch is built with vinyl and composite floor. The unit is conveniently located only a few blocks from Assembly Outlets and some steps from several bus routes, 101, 80, 89, 93 The home is about 633 square feet of living space and again the person who wants to buy this doesn’t need to do any work and shouldn’t be hit with any assessments for a while since the home is brand new and is on market for $499,000
Again the average rent for Boston again is less than $2800 a month for a 1 bedroom and the average rent in Cambridge is an about the same for Boston and in Somerville, the Rents are cheaper less than $2500 a month. Many of the properties mentioned in Boston at least offer 2 bedrooms or larger to buy for the same amount of money you would be paying if you put that money towards a mortgage and in Cambridge you might be looking for a 2 bedroom but your more likely to find a nice 1 bedroom for the same amount of money.
Many buyers think that you have to put 20% down to buy a home, and that is great if you can, but there are many other options out there, and there are programs out there in Massachusetts for first time home buyers that can help you go from renter to homeowner. If you want more information about these programs please contact me.
So do you think homeownership could be in your future this year? Contact me and let’s get you in touch with professionals who can help make homeownership a reality.