Is It Better To Rent Or Buy A House In Montana?
It seems that trying find a place to rent anywhere since the pandemic is daunting and at points a futile feat versus an income someone has working an everyday job.
Rent has come down a bit and the Airbnb movement is waning. However Inflation, interest rate hikes are looming behind everyone and it still translates to slightly elevated rent rates.
The average rent cost in Montana right now according to zillow for all bedroom and property types is around eighteen-hundred dollars($1800), and that's not counting the utilities as well as renters and pet insurance.
READ MORE: People Are Moving Here. But From Where?
Buying a home is a different story.
The average mortgage in Montana according to Consumer Affairs is about fifteen-hundred Dollars($1500), that's not including things like utilities.
Rocket Mortgage has a breakdown of how to calculate what a mortgage payment really looks like with a very complicated looking equation calculating mortgage.
It looks something like this:
M = P [ I(1 + I)^N ] / [ (1 + I)^N − 1]
This formula will help you calculate your mortgage payment based on the loan principal and interest before taxes, homeowners insurance and HOA fees. If it looks a little intimidating, though, you’re probably not alone – let’s break it down variable by variable so it’s easier to understand:
M = Monthly payment
P = Principal amount = Loan Balance
I = Interest rate
N = Number of payments
Depending on your situation and where you live it can vary. One would think that owning a home would be better that living somewhere and basically throwing money into a hole.
Is it worth being house-rich and cash-poor? Or does one just ride the rent train finding the best deal?
I would personally buy a house rather than rent.
What are your thought in the current climate?
Charley Pride's Place Airbnb Great Falls, Montana