Call Today
Resident Survey 
Abberly Place Apartment Homes
500 Abberly Crest Boulevard,
Garner, NC 27529

Get e-mail notifications of new blog posts! Enter email address below.

Delivered by FeedBurner


Apartments Raleigh NC Blog

RSS Grab the Abberly Place RSS Feed

Think Before You Buy a House

Joseph Coupal - Thursday, December 12, 2013

It is considered a known fact that home ownership is a part of the American dream. But don't for one second think that home ownership is all sunshine, rainbows, and ice cream sandwiches. There are serious trade-offs that you should know, understand, and accept before signing on the dotted line.

1. Mortgage debt -- a marriage you can't divorce

According to the Census Bureau, the average home price in 2010 was $272,900. A traditional mortgage will finance 80% of that, or just over $218,000. The Census Bureau also reported that median household income in the U.S. was just over $51,000.

Are you comfortable owing over four times your total gross income (before taxes)?

You may be thinking, "But if I don't buy a house, I'm throwing away my money to a landlord with rent!"

Would you rather be "throwing away" your money to a landlord, or to a bank? Because if you bought that $272,000 average American house with a $218,000 loan at 5% for 30 years, you'd pay over $52,000 in interest to your bank of choice over the first five years alone!

Before the house was paid in full, you will have paid that bank over $203,000 dollars -- in interest alone!

2. When you own the house, you pay for the maintenance and repairs

Landlords get a bad rap. A respectable, professional landlord can make life orders of magnitude easier. They are your on-call repairman, plumber, hardware store, and lawn maintenance company.

Air conditioner compressor breaks on the hottest summer day? Landlord will take care of it. Snow storm knocks a large branch into the yard? Landlord will take care of it. Bathroom drain cloggs? Landloard will take care of it.

Nothing like a surprise $5,000 expense (with interest) to ruin those summer barbecue plans.

3. How long did it take to save up that down payment?

In our "average American" example, our potential homebuyer would have to put down a payment of $54,000 to qualify for the traditional mortgage. After closing costs and miscellaneous expenses, let’s call this a round $60,000 just to purchase the home and get a loan approval.

That means that in truth, this buyer needs a decent bit more than $60,000, though. The bank will not make a loan for a borrower who is putting 100% of their liquid assets into the home. Banks like back-up plans, and without some cash cushion, there is no real back-up plan.

So now, our typical American, must save somewhere in the neighborhood of 150% of their annual income to comfortably afford the down payment.

It may make more sense to take that $60k to $75k savings and invest in a target date fund, or an index fund. Those investments are liquid, they can be rebalanced, they don't require property taxes, and their toilets won't overflow, forcing you to pay a plumber to come out on a holiday.

4. Buying a home is not an investment

This final point will be hard to swallow. Buying a home is not buying an investment. It's buying a highly leveraged forced-savings account.

According to data from Freddie Mac, the inflation adjusted return for an investment in a home bought in 1970 is just over 27% through the second quarter of this year. That's a 27% return over a 43-year holding period!

If buying a home isn't an investment, then what is it?

It's a forced savings account. Along with that healthy dose of interest that goes to the bank every month is also a sliver of principal pay-down. Over 10 to 20 years, those principal payments can add up to a good bit of equity. So for those individuals who have trouble putting money aside in savings every month, this is an attractive feature.

But the point is, don't buy a house thinking it is a panacea for financial woe. If you want to maximize your investments, look elsewhere. If you want real estate exposure, consider a REIT. Don't be fooled into thinking that buying a home is a one-way ticket to the good life.

If you are still sure you want to join the ranks of homeowners, go for it. Your decision is thoughtfully considered, you've done the research into the upsides and the downsides, and you're making your own decision.

Personal finance and managing money is as much or more art than it is science. There is never a single right answer that applies across the board. We must all consider the risks, the rewards, and our own personal situations, and then act thoughtfully.

For more information on renting an apartment in Garner, NC contact Abberly Place Apartment Homes.

Daily Finance

Recent Posts


buildings interational festival of Raleigh best place for educational opportunities Fun Facts flowers and plants coach green holidays Carbon Leaf breast cancer walk, NC music and arts festival street festival holiday food events in downtown Garner Alice in Wonderland fitness centers Best Run City roommate of the year Betty White cholesterol renting after retirement renting or owning in retirement Memorial Day Weekend A Movie With Dad (Free) relocating hockey GRA Papa Johns Pizza Groupon fall events, Raleigh monthly budget wahm perfect margaria recipe best fast food in Raleigh best plact to grow old in NC When to buy a home tornado in the south new places to live in Raleigh renting an apartment apartments in Raleigh, NC nutrition deciding between renting and buying cancer walk, NC televison commercials Mom's Day Christmas events Garner, NC during a tornado go green without plastic renting in Raleigh, NC Southern charm New Year New Year's Eve Raleigh food gift baskets renter's insurance One bedroom hurricane awareness apartments party idea personal safety holiday events Around Town apartments in Garner jokes Food Truck rodeo how many billionaire in the world Apartments in Garner NC rent Downtown Garner coke March Madness sports bars raleigh tips on how to choose a pumpkin apartment pets, Garner, Nc winter cold dining tables for sale Personal development Tar Heels Santa Charity Bar Crawl christmas holiday christmas decorations heat index in Raleigh apartments around Raleigh Valentines Day restaurants new year’s day plastics Gingerbread House Competition Raleigh North Carolina Search Engines apartment community healthy school lunch ideas Super Bowl St. Patrick's Day Parade Raleigh gas mileage, NC best food in Raleigh Raleigh tornado apartment amenities popcorn Jeffrey Gitomer relocating to Raleigh, NC how to get out stains retirement years winter weather Mother's Day buying and renting Susan G. Komen Walk, Raleigh wardrobe pet lovers North Carolina Beer Month Financial advice location family fun setting your thermostat summertime drink how to get out carpet stains apartment hunting, Garner, NC Waste management Garner apartments St. Paddy's Run Green 8k save money on renting Adult eating outside apartments for college grads burn calories Positive living in Garner room mate duties Mental Health discipline of living a positive attitude Google Bar Crawl, Raleigh tax free weekend, NC Fun Fact Friday green decorating Irish pubs Raleigh two bedroom apartment in Garner, NC Going Green dog parks, Raleigh valentines day gift ideas Easter egg hunt Gala in the Garden Nixon prank winter workout rare syndromes Thanksgiving upcoming events, Garner, NC Beer and Bacon Festival walking renting apartments near Raleigh Holiday Season Raleigh’s walking food tour Irish Festival best city for Valentine's day go green food best plact to age in NC Events in Raleigh Vending meatballs Raleigh nightlife healthy school lunch tips stay cool chicken recipe eco-friendly abberly place apartment homes mild winters relax Audrey Niffenegger Abberly Place losing weight Triangle Restaurant week Black Friday savings Happy Easter NC best place to live and work Raleigh, North Carolina desserts kitchen apartments near Raleigh, NC save money on groceries GoogleInstant bunnies apartment homes BBQ tips cleaning Real estate looking for apartments in Garner, NC apartment decor Music Raleigh Area green living changing apartments high tech industry home maintenance and repairs hurricane path Raleigh ranked number 1 house plants for indoor air quality young adults Resident Party three bedroom apartments in Garner, NC Raleigh ranked no. 1 ads St. Patrick's Day Parade holiday giving environment deciding whether to rent or buy St. Patrick's Day area activities The Gratitude don't drink and drive memorial day party tips one bedroom apartments, Raleigh fun ways to burn calories Sunday in the Park concert series Thanksgiving dinner drink responsibly New Year's resolutions lego expo Arnold Palmer designed courses making apartments green Little Engine That Could North Carolina World Beer Festival Raleigh two bedroom apartments, NC pet friendly Missing Dog green methods Third Tuesday dieting icebergs Raleigh, NC Coca Cola World Beer Festival fresh fruits and vegetables Memorial Day recipes apartment communities diy beekeeping N.C. State Fair house plants that help indoor air quality carolina hurricanes The International Festival corn maze Garner apartment reviews New Year's Eve Events Raleigh Winterfest Duke University Self-Help urban beekeepers Panthers home depot three bedroom apartments, Raleigh Concerts and Events teacher holiday gift ideas before a tornado Go Green two bedroom apartments, Raleigh model apartment home furniture Arts and Entertainment Beer Month events, Raleigh, Garner Father's day gift ideas hunger negative attitude wealthy teaching kids the value of money apartment reviews, Garner Easter summer activities for kids renting an apartment in Garner, NC MLK celebration in Raleigh eat healthy buy or rent christmas Credit Cards top 35 cities in the US for Millenials Beer & Bacon Festival pet friendly apartments, Raleigh Resident Advantage Program Lake Benson Park Raleigh Festivals International Festival Oktoberfest, Raleigh, NC St. Patrick's Day event one bedroom apartment in Garner, NC green Festivals around Raleigh Memorial Day appetizer recipes Restaurant Week new year’s eve plastic Garner Spare Change Beer, Boubon and BBQ Festival roommate duties April Fool's Day how to start beekeeping Holiday events, Raliegh renting in retirement apartments reviews in Garner, NC how to meet people The Time Traveler's Wife retirement Bar Rescue two bedroom apartments in Garner, NC hiking trails holiday shopping Getaways community holiday Carolina Panthers MasterMinds items for sale how to get out sofa stains teacher gift ideas decision to rent or buy conserve energy in your apartment Apartments near Raleigh how to save money Chapel HIll festifall Arts Festival three bedroom apartment in Garner, NC compound interest leftover turkey recipes Raleigh events hiking swap clothes dogs and cats Marbles Kids Museum holiday trees lego festival how to improve credit score apartment wishes saving money tips Pet Friendly Apartments Winterfest March Madness positive mental attitude Jennifer Moran New Year's Eve first night Raleigh Triangle relocating to Raleigh HH Hunt green cleaning relocating to Raleigh NC food gifts retire wealthy cost of home maintenance Abberly Place Apartments ways to burn calories fourth of July, Raleigh, NC why rent apartments in the Carolinas Raleigh area college grads newly weds rentning Holiday Open House Lebanese Festival First Night in Raleigh improve indoor air quality personal health red hawk sports health Free Music on Main Street Series credit score rent vs. buy tips on renting roommates winter health Black Friday deals apartment decorating ira tree lighting, Raliegh goals for kids rent or buy top 25 places to retire grilling near Raleigh NC apartments in Charlotte NC garden parties top cities in the US for Millenials apartment in Garner, NC apartment management company Oktobersfest Kentucky Derby Dtown Oktoberfest apartments in Glen Allen, VA apartment contest things to do in the Triangle Raleigh fourth of July urban beekeeping apartment resolutions renting in Garner, NC new year’s resolutions holiday events, Raleigh, NC New Hope River Valley cost of home maintenance and repairs World Beer Fest kitchen tools how to keep new years resolutions Music on Main Concert fall festivals, Raleigh three bedroom apartments, NC increase gas mileage, NC abberly place apartments homes veterans day parade Raleigh pet friendly apartments in Raleigh, NC Winter Holiday Season apartment pets kids savings account summer vacation Raleigh Rare & Vintge Beer Tasting Do More for Pets New River Gorge Earth Day Celebration Jordan Lake happiness machine how much is a billion recipe for summer beer festival keep the environment clean Museum Exploration Turkey Garner NC April 1st kitchen cooking downtown Raleigh Restaurant Week eating tree lighting Garner, NC best place to live for young adults barbeque YogaFest Google Instant community shrink wrap North Carolina State Fair Valentine's day apartment building fire YogaFest Raleigh Vending machine Garner Revitalization Association after a tornado energy efficiency America’s most livable cities margaria recipe Restaurant Week Raleigh high profile universities Santa, Raleigh, NC Local restaurants good food vacation spots renting vs buying a home travel Tax Day diets winterfest celebration gas prices, NC healthy Food St. Patrick's Day Irish Festival holiday popcorn apartment floor plans NC State Fair Taste of Downtown Raleigh Gourmet Food Tour tornado free coffee Soda Raleigh bars Raleigh Restaurant Week farmers markets torndo warning Abberly Green food and apartments Halloween events reviews of apartments in Garner, NC redbox movie rental home ownership fireworks, Raleigh, NC post-grad apartments 401k apartment reviews, Garner, NC renting Apartment Homes aprtments in Garner NC New Zealand National Public Lands Day Restaurants open for Thanksgiving Dinner eastern carolina university tips for apartment pets put away decorations Raleigh fireworks JC Raulston Arboretum fishing Concerts and events in Garner free rent Glen Allen, VA Raleigh parks Have a Coke a Smile and a great weekend #HowYouLive skyscrapers vacation destinations St. Patrick's day events Raleigh tornado safety two bedroom or three bedroom 1992 home insurance coverage research triangle park renting in Garner hurricanes HHHunt concert series indoor air quality holiday ornaments twister global warming hurricane irene plasticx downtown Raleigh restaurants living in an apartment renting apartments in Garner, NC Labor Day flu shots renting or buying Durham Earth Day Festival recycling metro Raleigh events Garner pride abberly place fitness center chairs for sale safety rent or buy a home moving into an apartment Wearin’ of the Green Festival, Raleigh top cities for Millenials one bedroom apartments in Garner, NC apartments for college graduates Rachel McAdams healthy eating golf courses Rent-to-own renting vs buying positive attitude Father's Day apartment fire senior learning program Apartment Living renters insurance Wachovia iMax Theater Raleigh community events healthy food furniture for sale Redbox has a great deal Liberty National Garner litter sweep White Deer Monster Dash and Family Fun Run decoration newlyweds rentning Abberly Place Garner Apartment Homes Raleigh New Year's Eve Abberly Place apartment reviews tornadoes Olympic Fun Day hurricane insurance interest calculator Susan G. Komen Walk team how to be a good roommate valentines day gifts Father's day gift pullen park best quality of life Memorial Day try to meet people hot weather and your AC Abberly Place residents Martha Stewart golf Triangle area golf courses fall events Memorial day events Raleigh, NC raleigh NC drink recipe hurricane track leftover dinners March Madness sports bars how to choose a pumpkin one bedroom apartments, NC triangle area Holidays Raleigh restaurants teaching kids to save money american diet space saving apartment furniture great place to come home to apartments reviews for apartments in Garner, NC Pool Party ways to go green Best Run Cities start a supper club Garner, NC Wearin' 'O the Green Festival Downtown Raleigh Food Truck rodeo using your AC St. Patrick's Day Raleigh Raleigh NC Earth Day Festival walking food tour renting vs owning Pet friendly Apartments in Garner Raleigh ornaments halloween events, Raleigh North Carolina Museum of Natural Sciences green cleaning products charity swim for cancer, Raleigh spaghetti Generation Rent International Festival of Raleigh rent or own Museum of Natural Sciences HHHunt Apartment Homes health and fitness Raleigh improve credit score Earth Day Celebration excercise