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Saint Louis Life

Should You Rent or Buy in Saint Louis?

Should You Rent or Buy in Saint Louis?

photo credit: arrows via photopin

Should You Rent or Buy in Saint Louis?
March 28
16:34 2016

It’s an age-old question: Should I rent or buy?

I think everyone knows the advantages of owning a home. You build equity, you get to make improvements, and so on, but let’s dig in a little deeper.

Trulia says the median rent in Saint Louis is about $850 bucks a month. If you could OWN your own property for the same or less than that each month, would you? I suspect you would.

Let’s take a look at a few examples that are on the market right now that let you do just that. To come up with the numbers on this, I used Zillow’s Mortgage Calculator.

When you own, you also have to pay insurance, taxes and sometimes a special type of mortgage insurance, in addition to principle and interest (I assumed 3.5%) on your loan. The numbers below include all that.

I also assumed that you put 3% down. That’s only 3000 bucks on a 100,000 dollar home, which is about what you’ll pay for something comparable to an apartment in Saint Louis. By the way, if you don’t have 3000 bucks for a down payment, there’s a lot of ways you can get help with that. Contact me for more info.

OK, let’s get to the fun part — looking at some properties! Here’s a few examples and the numbers associated with buying:

3438 Russell Blvd, Apt 904 ($692 / mo)

Spotlight

Price: $52,000
Bedrooms: 1
Bathrooms: 1
Square Feet: 530

The one is right in my neighborhood. I love this historic building right across from the Compton Water Tower and you can throw a rock to Compton Heights and all the restaurants of South Grand! You only pay $692 a month for this one. Click for more info.


5636 Waterman Blvd, #43 ($756 / mo)

SpotlightPrice: $87,000
Bedrooms: 1
Bathrooms: 1
Square Feet: 763

What a great condo in the central west end! It’s yours for only 756 bucks a month. It’s easily walkable to Metrolink, Forrest Park and the hospitals are close by if you want an easy commute. Click for more info.


 

3936 French Ct. ($896 / mo)

SpotlightPrice: $133,900
Bedrooms: 3
Bathrooms: 1
Square Feet: 988

If you want your own four walls and LOTS of updates for only $896 a month, check out this great rehab in Boulevard Heights! It’s our most expensive option, but everything is new! It’s in a super-quiet neighborhood with a gorgeous park, I-55 and lots of amenities nearby. Click for more info.


5424 Marquette Ave. ($807 / mo)

SpotlightPrice: $119,900
Bedrooms: 3
Bathrooms: 1
Square Feet: 1265

This North Hampton house has lots of updates and is the largest of the ones here, but it only costs you $807 a month. Now this is a great way to get a bunch of house for your money! Click for more info.


These are just a few examples of what it looks like to rent versus by in Saint Louis.

Let’s look at a direct comparison of what you’ll pay each month if you BUY the above properties vs. if you RENT the same property:

Home  Rent*  Buy
 3438 Russell  $725  $692
 5636 Waterman  $1075  $756 WHOAH!!!!
 3936 French  $975  $896
 5424 Marquette  $975  $807

*Rental numbers are from Zillow’s Rent Zestimate. 

Have I convinced you to buy instead of rent? Give me a call at 314-265-0015 or email jeff@claritystreetrealty.com and let’s talk about how you can get more home for less money.

photo credit: arrows via photopin (license)

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About Author

Jeff Steinmann

Jeff Steinmann

Hi, I'm Jeff Steinmann, the creator of Saint Louis Life. I created Saint Louis Life because over the 16 years I've lived in this city, I've fallen in love with the architecture, entertainment, opportunity, and most of all, the people. I wanted to create a place to highlight everything that's great about this city. In addition to being a fanatical advocate for Saint Louis, I'm an author, real estate investor and licensed REALTOR.

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