Why are rents sooo high? Rent or buy? (Scotch Plains, Princeton: rentals, mortgage)
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That seems awfully high for rent unless it is an extremely nice place. But really, you haven't given nearly enough information for anyone to really help you.
It seems that rents are generally high right now due to relatively high demand. With the standards to get a mortgage loan being tighter (higher down payments, higher credit scores than what used to get you a mortgage), and with so many of the people who ARE qualified to buy, waiting on the sidelines to see what the market is doing, there are a lot of renters.
I also think that there are quite a few rentals out there with somewhat unrealistic initial asking prices, because some people are buying a new home but hoping to rent out their current home and cover their mortgage with a tenant, vs. selling now at what that they think is at or close to the bottom of the market. But IME, people sometimes start off asking what they need to get for the place, and don't always consider the actual rents in their area.
I have checked all over for a nice, upgraded townhome, and the price point for a 2 or 3 bedroom EVERYWHERE seems to be $2700, with top move in condition units going for 3K. I've checked all the way from Nanuet, NY, out to Basking Ridge, and down to Princeton. My standard is just that, standard. I know what one can buy for 200K in the Chicago suburbs. Just such units. They are so darn overpriced here.
I hate having to pay such high rent, I wonder how much negotiating room there is in the rental market...
I have checked all over for a nice, upgraded townhome, and the price point for a 2 or 3 bedroom EVERYWHERE seems to be $2700, with top move in condition units going for 3K. I've checked all the way from Nanuet, NY, out to Basking Ridge, and down to Princeton. My standard is just that, standard. I know what one can buy for 200K in the Chicago suburbs. Just such units. They are so darn overpriced here.
I hate having to pay such high rent, I wonder how much negotiating room there is in the rental market...
You might do better in the Monmouth County area, if that works for you. Prices seem a little better, and you've got an ocean nearby to boot.
However, I was somewhat doubtful of your claim, so I went on Realtor.com and did searches on rentals in Mahwah, figuring that if any place in New Jersey could be considered the land of townhouses, that's the one.
I know what one can buy for 200K in the Chicago suburbs. Just such units. They are so darn overpriced here.
Comparision like this is meaningless. Tri-state property values are much higher compared to the rest of the country, I don't care that you can buy a mansion in Florida under 300k, it is not happening here.
What should we do? Rent a nice townhome for $2700 in Plainsboro, or buy a small 3 Br house in Scotch Plains? So lost in this....
It is becoming a good time to buy: 1) mortgage rates are ridiculously low. You can lock a 30-year rate under 4%; 2) prices are way off historic highs; 3) mortgage deductions are still in-place; 4) rents have risen so much that buying now makes economic sense.
If you can afford the downpayment and have good credit, consider buying.
What should we do? Rent a nice townhome for $2700 in Plainsboro, or buy a small 3 Br house in Scotch Plains? So lost in this....
both the towns are so far apart that comparing them makes little sense. so does comparing prices to Chicago.
a rent vs buy decision can hardly be made on how much each costs. there are far more factors to be considered. if money was the only factor, hardly anyone would opt to rent when owning only costs a fraction more.
Except the home values are still going down. Some as fast as $50K in 6 months. I find it very risky to buy at this time. I find it a pity that everything in a reasonable price range (to buy or rent) is old, small, and a general disaster.
Except the home values are still going down. Some as fast as $50K in 6 months
The proverbial crystal ball. Rents are high in this area because the person that bought the townhouse or home paid a fairly high price. It's economics 101. Someone isn't going to fork out 3 or 4 hundred thousand on a property and pay 10K in property taxes and fees and rent it for 1,000 bucks a month.
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Except the home values are still going down. Some as fast as $50K in 6 months
