Lorraine Kuney - Franklin, MA, Real Estate, Medway, MA Real Estate.


With rent prices soaring in many areas of the U.S., renters are starting to consider whether now is the right time to start saving for a down payment on a home.

Depending on where you live and what your timeline is for buying a house, you might be wondering the same thing.

So, in today’s post, we’re going to talk about how to break down your rental costs to determine whether it makes more sense to buy a home rather than continue renting.

Add up your rental costs

There are any number of costs associated with renting depending on your lease agreement. Some renters are required to pay their own heating and utilities, while others have several bonuses thrown into the cost of their rent, such as internet, gym memberships and more.

So, take a minute to write down each of your rental expenses. To get you started, here’s a list of some of the most common costs for renters:

  • Monthly rent

  • Electric bills

  • Heating bills

  • Trash removal

  • Renter’s insurance

  • Parking fees

Now that you know how much you put toward renting each month, it’s time to take a look at what it could cost you to own a home.

Homeowner expenses

The key thing to remember about buying a home is that your costs can vary widely based on the size of your home, where it’s located, and a number of other factors. However, you can often find area averages online.

If you’re considering a starter home (which you should!), then you’ll want to look at houses in your area that are on the lower end of the market.

To get an idea of what your mortgage payments and monthly interest will be, you can use a free tool like Bankrate.

Now, let’s make a list of your homeowner expenses:

  • Mortgage payment

  • Home insurance

  • Trash removal

  • Utilities

  • Heating and AC costs (plan for higher costs than renting due to more space)

  • Electricity

  • Property taxes (divided by 12)

  • Mortgage insurance (if you don’t have a 20% down payment saved)

Cost-benefit analysis of owning a home vs renting

Now that you know the general costs, you’re getting close to knowing whether it would be cheaper or more expensive to buy a home than rent.

However, that isn’t the full picture. When you own a home, you’re responsible for maintenance and upkeep. That means you should budget around $250 per month toward maintenance. Even if you don’t use that amount each month, there’s a good chance you’ll have to make a repair or upgrade, or even hire a professional to come and fix something on your home.

The final piece of the picture involves home equity. When you own a home, most of the money you pay each month to your lender will come back to you in the form of equity. As a renter, your money goes to your landlord and will never be seen or heard from again.

So, if you’ve added up your lists, accounted for maintenance costs, and still have enough left over to live comfortably each month by buying a home, you can most likely bet on buying as being a better option.

If not, it might pay off to rent for another year or two while you save up for a down payment so you can get the lowest interest rate and avoid PMI.


Opportunity is Knocking for This Picture Perfect Colonial in Sought After Franklin Woods! Gorgeous Landscaping Accent the Curb Appeal of This Well Cared for Home. Light & Bright W/ Updated Neutral Colors! Slate Entry W/ Hardwood Staircase. Formal DR W/ Hardwoods. Granite Kitchen W/ Stainless Appliances, Peninsula, Pantry & Hardwoods. Lovely Formal Living Room Opens thru French Doors to Vaulted Fireplaced Family Room W/ Hardwoods. First Floor Laundry. Updated First Floor Full Bath! Upstairs You Will Find Hardwoods in Hallway. Master Suite W/ Newer Carpet, Full Bath & Walk In Closet. Second Bedroom W/ Hardwoods & Closet System. Two More Bedrooms & Full Bath Complete the 2nd Floor. Fantastic Space in The Finished Lower Level W/ a Cedar Closet & Tons Of Storage ! Updates in Last 9-10 years Include: Heating System, Roof, Garage Doors, Gutters, A/C Air Handlers-1 Condenser Replaced. Town Water/Sewer/Nat Gas. Irrigation. Heated Garage. A Beautiful Private Wooded Back Yard! Don't Wait!!

More Info on this Property | New Listing Alerts


875 Washington St, Franklin, MA 02038

Single-Family

$549,900
Price

9
Rooms
4
Beds
2/1
Full/Half Baths
Beautifully Updated New England Saltbox Colonial in a Picturesque Wooded Setting. Framed by Beautiful Trees & a Stone Wall This home Sits Far Back from the Road, You Will Love the Serene Privacy! Fully Fenced Yard, 2 Sheds and Parking for 12+ Cars! A Light Filled 2 Story Entry with Hardwoods & Tile Thruout the First Floor. Gorgeous Remodeled Kitchen,( 2018) Custom White Cabinetry w/pullouts, Granite, Tile & Stainless Appliances. Large Front to Back Living Room, Entertaining Family Room Open to The Kitchen with an Awesome Wood Stove. Formal Dining Room & a Fantastic First Floor Office! First Floor Laundry/Mudroom & Remodeled Half Bath. Upstairs You Will Find a Lovely Updated Master Suite With Hardwood Floors & Remodeled Master Bath.(2016) Three Additional Bedrooms, & a Beautiful Updated Main Bath that Completes The Second Floor! Entertaining is Easy on the Maintenance Free Decking & Stamped Patio! Young Weil McLain Boiler ( 2012) Just Minutes to 495,Trains, Shopping and Restaurants!
Open House
Saturday
October 17 at 11:00 AM to 12:30 PM
More Open Houses
Cannot make the Open Houses?
Location: 875 Washington St, Franklin, MA 02038    Get Directions

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8 Bridle Path, Franklin, MA 02038

Single-Family

$629,000
Price

8
Rooms
4
Beds
3
Baths
Opportunity is Knocking for This Picture Perfect Colonial in Sought After Franklin Woods! Gorgeous Landscaping Accent the Curb Appeal of This Well Cared for Home. Light & Bright W/ Updated Neutral Colors! Slate Entry W/ Hardwood Staircase. Formal DR W/ Hardwoods. Granite Kitchen W/ Stainless Appliances, Peninsula, Pantry & Hardwoods. Lovely Formal Living Room Opens thru French Doors to Vaulted Fireplaced Family Room W/ Hardwoods. First Floor Laundry. Updated First Floor Full Bath! Upstairs You Will Find Hardwoods in Hallway. Master Suite W/ Newer Carpet, Full Bath & Walk In Closet. Second Bedroom W/ Hardwoods & Closet System. Two More Bedrooms & Full Bath Complete the 2nd Floor. Fantastic Space in The Finished Lower Level W/ a Cedar Closet & Tons Of Storage ! Updates in Last 9-10 years Include: Heating System, Roof, Garage Doors, Gutters, A/C Air Handlers-1 Condenser Replaced. Town Water/Sewer/Nat Gas. Irrigation. Heated Garage. A Beautiful Private Wooded Back Yard! Don't Wait!!
Open House
Sunday
October 18 at 11:30 AM to 1:30 PM
Cannot make the Open Houses?
Location: 8 Bridle Path, Franklin, MA 02038    Get Directions

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8 Bridle Path, Franklin, MA 02038

Single-Family

$629,000
Price

8
Rooms
4
Beds
3
Baths
Opportunity is Knocking for This Picture Perfect Colonial in Sought After Franklin Woods! Gorgeous Landscaping Accent the Curb Appeal of This Well Cared for Home. Light & Bright W/ Updated Neutral Colors! Slate Entry W/ Hardwood Staircase. Formal DR W/ Hardwoods. Granite Kitchen W/ Stainless Appliances, Peninsula, Pantry & Hardwoods. Lovely Formal Living Room Opens thru French Doors to Vaulted Fireplaced Family Room W/ Hardwoods. First Floor Laundry. Updated First Floor Full Bath! Upstairs You Will Find Hardwoods in Hallway. Master Suite W/ Newer Carpet, Full Bath & Walk In Closet. Second Bedroom W/ Hardwoods & Closet System. Two More Bedrooms & Full Bath Complete the 2nd Floor. Fantastic Space in The Finished Lower Level W/ a Cedar Closet & Tons Of Storage ! Updates in Last 9-10 years Include: Heating System, Roof, Garage Doors, Gutters, A/C Air Handlers-1 Condenser Replaced. Town Water/Sewer/Nat Gas. Irrigation. Heated Garage. A Beautiful Private Wooded Back Yard! Don't Wait!!
Open House
Sunday
October 18 at 11:30 AM to 1:30 PM
Cannot make the Open Houses?
Location: 8 Bridle Path, Franklin, MA 02038    Get Directions

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