Renting vs owning in the Baton Rouge area
Renting vs owning in the Baton Rouge area
Is home ownership
right for you? I recently met with a couple that was interested in buying their
first home but had no idea what to expect. The internet is full of pros and
cons that left them nervous and misinformed about the entire home buying
process. I’ll give you my thoughts, and then tell you what happened with my
first time home buyers.
In my opinion, the Greater Baton Rouge area (including
Ascension and Livingston Parish) differs from most areas across the country.
While it is possible to find a rental under $1,000 a month, the majority of
apartments in Baton Rouge range from $1100-$1700 monthly PLUS a deposit which
is usually equal to the rental amount. Ascension Parish apartments are equally
as high according to apartments.com. Other options include renting a home or
condo from the owner. The average monthly rent is generally close to $1 per
square ft of living. So, a 1400 square foot home would rent at or near $1400 a
month.
The couple I met
with was nearing the end of a 12 month lease of a 2 bedroom apartment in
Ascension Parish. Their monthly rent was $1250 for a 1002 square foot apartment.
According to what they “learned” online, buying a home meant a big down payment
and the “stressful” process of getting approved for a home loan. In one of many
conversations, they admitted that this delayed them from even considering talking to
a Realtor.
I asked my potential
buyers to meet me at my office and we discussed their options at length. By the
way – none of the wonderful options available to them popped up in their “research”.
They were unaware that you can buy a new home with NO money down. Many areas
including Prairieville, Geismar, St. Amant, Gonzales, Dutchtown, parts of Baton
Rouge, Central and Zachary are covered by a program called Rural Development.
This program does have income restrictions but has helped MANY buyers stop the
renting process. You can’t rent an apartment or a home with NO down payment.
Most Veterans qualify for VA financing which is also 100% financing with no
down payment. Currently there are down payment assistant loans, bond money, and
a mortgage credit certificate program which is a homebuyer assistance program designed to
help lower‐income families afford home ownership. After this
conversation, they were in quite a hurry to get approved! To calm their
anxiety, we called a local lender together, and within minutes were approved to
buy a new home.
After touring several homes in
Ascension and Baton Rouge, we narrowed it down to 2 homes. They were:
HOUSE 1: 3 bedroom/2 bath
1593 living area with a garage and half acre – priced at $199,000.
Their payment with taxes and insurance would
be approximately $1299 a month. Although this was $50 more monthly than their
current rent, this home offered almost 600 more square feet of living area, and
a beautiful yard.
HOUSE 2: 3 bedroom/2 bath
1525 living area with garage and spacious yard – priced at $175,000.
Their payment with taxes and insurance would be
approximately $1128 a month.
My buyers bought house #2 which was larger
than their apartment, offered covered parking, a yard to run and play in, a
patio to relax under…WITH NO DOWN PAYMENT and a note $127/month CHEAPER than
their rent.
If you are considering
buying in the near future, call me. I would love to go over your options and
discuss the entire homebuying process with you. This simple conversation will
ease your anxieties and answer your questions to better prepare you when you
decide you are ready to take the leap!
I have been in the real
estate industry for 20 years and cover all of Baton Rouge, Livingston, and
Ascension. In addition to houses, I can also help with condos, townhomes,
mobile homes, property management, and land.
Feel free to call, text,
or email me at your convenience! You can also visit my website at www.brandysellslahomes.com or
follow me on Facebook.
I look forward to talking
with you soon!
Brandy Helms, Realtor
Licensed
by LREC
RE/MAX
First
Doug
Ferris, Broker/Owner
225-445-5190 cell
225-291-1234 office
Each
office independently owned and operated.
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