Auston Chase Apartment Homes

59 Summerlake Circle, Ridgeland, SC 29936
Auston Chase Apartment Homes Phone Number Call: 833-292-0330 Auston Chase Apartment Homes Email Address Email Usleasingoffice@liveaustonchase.com Auston Chase Apartment Homes Google Map View Map
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Opens: Monday-Friday: 9A-6P | Saturday: 10A-5P | Sunday: 1P-5P

$930-$1,495

Apartment Homes Bluffton SC

Reasons Why Buying a Home is NOT a Good Investment

Reasons Why Buying a Home is NOT a Good Investment

Joseph Coupal - Thursday, July 27, 2017

Auston Grove, Ridgeland, SCSome Americans believe that buying their own house is the best and smartest investment they'll ever make.

There are several valid reasons for buying a home. But buying as an investment or as the cornerstone of your long-range financial plan should not be one of your primary motivators. If your home doubles in value over the next few years, then great! Consider it a bonus. There are several reasons you shouldn't look at your home as an investment, especially in today's economy.

An inefficient investment

The main reason not to buy a bigger or fancier home simply because "it's an investment" is that there are much better ways to put your extra dollars to work. Real estate has generally appreciated around 4% to 5% per year on average, and this can be higher or lower depending on your specific location. Depending on what statistic you look at, home prices have historically appreciated at 3.4% to 5.4% annually over the past 20 years.

Compare this with an average annual return of 9.1% for an S&P index fund, 7.2% for the average mutual fund, and 7.16% for the ultra-safe 30-year Treasury, although it pays less these days, around 3.65%.

Simply put, the risks are not worth the rewards.

Don't forget about mortgages

Your mortgage will cause you to pay much more for your home than the agreed-upon price, which also will eat away at your returns. Let's say you buy a $300,000 home and put 20% down, so you finance the remaining $240,000 at 4.5% (about today's rate for a 30-year mortgage). If your home appreciates at 5% annually, by the time your mortgage is paid off, it should be worth around $1,296,583.

However, because you are paying interest on your mortgage, when you add up all of the payments, you're really "paying" a total of $497,794 for the house. This implies a total return of $798,809 after 30 years, or just 3.2% per year on an annualized basis.

Poor risk/reward ratio

When you consider the risks involved with owning a home, it is not really a prudent long-term investment. In fact, the risks associated with owning a home are quite comparable to the level of risk associated with investing in an index fund. From top to bottom, the S&P lost 58% of its value before bottoming out. It has since recovered to a level that is 13% above its pre-crisis peak.

In contrast, the U.S. real estate market fell about 35% from its peak and is currently well below its pre-crisis peak.

There are good investments in real estate, but your home isn't one of them.

If you really want to "invest" in real estate, the only worthwhile way to do it is to buy an actual investment/rental property. These can be very lucrative if done correctly. In theory, an investment property should be a house (or apartment building, commercial space, etc.) that you buy and someone else pays for over time.

To sum it up, there are several ways of putting your investment dollars to work that simply make more sense than buying your own home. It just doesn't make sense for "investment" to be the reason to spend more on a house in the hopes of producing long-term gains.

For more information on apartments in Ridgeland, SC, contact Auston Chase Apartment Homes.

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Daily Finance


How to Decide Whether to Rent or Buy

How to Decide Whether to Rent or Buy

Joseph Coupal - Friday, July 21, 2017

Auston Chase, Ridgeland, SCHomeownership is commonly considered a sign of success, but in some cases, it can actually work against your financial goals.

While buying and renting can both be good options under the right circumstances, people underestimate the hassle of owning and the benefits of renting because they are hardwired to do so.

Let's face it: most of us have a deep-rooted feeling that homeownership equals success and buying equals progress. Renting, on the other hand, is often seen as a form of failure—or even "settling." If you can't afford to buy, you just rent because you need a place to live, right?

This line of thinking is dangerous.

Before you commit to buying, it's important to note why you're doing it in the first place. If you're considering a home purchase to appear successful, you're setting yourself up for failure. If you're shopping for a home because you feel like it's a natural next step, you're making a mistake.

The Case for Renting

Renting may not feel like progress, but that doesn't mean it's not the right move for you. The fact is, renting comes with a ton of huge benefits, including:

1. Flexibility. 

Maybe you prefer to move around, seeing new neighborhoods and cities. No matter what, it's hard to put a dollar value on that experience and enjoyment. In addition, if you anticipate a career or job change, renting might suit you better, as buying a home can hinder your flexibility to pick up and move.

2. Avoiding homeownership costs. 

Homeowners are painfully familiar with unforeseen and often hefty costs such as furnishing, decorating, leaky pipes, landscaping, general maintenance—you name it. As a tenant, you enjoy the perks of your home without the worrisome financial burden.

3. Liquidity.

Generally, you can't turn a house into cash overnight. Many people invest their life savings into a home, putting the bulk of their net worth into an illiquid asset. Risk comes with tying up a large portion of your wealth in such an asset. Renting allows you flexibility and other investment options.

4. Building credit. 

As consumers, we need a healthy credit score for pretty much everything we do, from getting a new cell phone plan to buying a car. While renting doesn't boost your credit rating like owning a home might, creating a history of on-time rental payments can, in some cases, help build your credit to qualify for a mortgage down the road. This history begins when (and if) your landlord reports your payment data to credit agencies. Third-party services can help you report this information on your behalf.

For more information on apartments Ridgeland, SC, contact Auston Chase.

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Kiplinger


Reasons To Move To The Bluffton, SC Area

Reasons To Move To The Bluffton, SC Area

Joseph Coupal - Thursday, July 13, 2017

Auston Chase, Beaufort, Bluffton, SCSouth Carolina’s cities and towns are always making lists of one sort or another. Perhaps it’s because South Carolina is the most beautiful, friendly and popular place to live or visit in America.

On that note, there’s one South Carolina town that is getting lots of state and national attention lately. If you’re considering a move, this just might be the place for you. Here are 10 reasons why:

  1. Bluffton was named a Southern Dream Town by Garden & Gun Magazine in their June/July 2015 issue.
  2. The U.S. Census Bureau just named Beaufort County the 12th fastest growing community in the nation from 2014-2015.
  3. In 2015, we named Bluffton, SC the 3rd Safest and Most Beautiful Place to Live In South Carolina.
  4. Forbes Magazine has named Bluffton, SC one of the Top 25 Places In The U.S. To Retire.
  5. In 2015, Bluffton was named the #3 town in South Carolina to raise a family. The ranking was bestowed by the website niche.com.
  6. The Huffington Post named Bluffton, SC the #1 destination on its list of Ten Amazing Non-Beach Alternatives For A Summer Getaway. But we ask, why stay for JUST a weekend?
  7. Bluffton is one of the Top 10 SC Cities for Home Ownership, according to the consumer website, NerdWallet.
  8. In 2015, the American Farmland Trust ranked the Farmers Market of Bluffton #20 in the nation for their People's Choice Award.
  9. This charming town has quite a few historical homes and buildings, including "The Store," built in 1906.
  10. In 2014, the website NerdWallet named Bluffton one of the Top 10 Cities on the Rise in South Carolina.

All of these accolades for Bluffton are certainly great reason to live here. For more information on apartments near Bluffton, SC contact Auston Chase.

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onlyinyourstate.com


4 Reasons to Rent

4 Reasons to Rent

Joseph Coupal - Thursday, July 06, 2017

Auston Chase, Ridgeland, SCBuying a home is part of the American Dream, but that doesn't necessarily mean it's the best choice for you.

For decades, the conventional wisdom has been that buying a house makes much better financial sense than renting one. After all, you'll have to spend a large chunk of your income on housing either way, so doesn't it make more sense to invest that money in something you'll eventually own, rather than simply forking cash over to someone else?

However, a number of factors can make renting a much wiser financial decision than buying. Here are four good reasons why it may be smarter for you to rent instead of buy.

1. You're not staying in the home very long

The sooner you intend to move, the less sense it makes to buy.

If you plan to stay put for less than two years, then buying a house would be a poor investment. In such a sort amount of time, the home likely wouldn't gain enough value to make up for the costs of buying and selling it, like realtor commissions, closing fees, moving expenses, and so on. And don't forget that buying or selling a house is a huge hassle compared to switching from one rental to another.

2. You're in an inflated housing market

Some parts of the country are prohibitively expensive to live in. Coming up with a down payment for a $500,000 house is considerably harder than coming up with a down payment for a $150,000 house. But what makes certain highly desirable urban areas really problematic is that home prices in these areas can be driven steeply upward by the high demand. Not only would you have to pay an inflated price for the house, which makes it harder for you to turn around and sell it for a gain in a few years, but you'd also have to pay far more each month as a homeowner than you would as a renter for the same amount of house.

3. Your income isn't secure

If you're not confident in your job security, then now is not the time to make a huge purchase like a new house.

If you suddenly lose a major source of income, then you may need to cut your housing costs in order to get by. That's a relatively quick and painless process if you're renting; you might pay a fee to end your lease early, but you could move to a cheaper home in a matter of days. If you own your home, then a career crisis could force you to sell your house at a bad time; it may take months to find a buyer, or you might end up selling the house for less than you paid for it.

4. You have no savings

If an emergency savings account is important for a renter, it's absolutely crucial for a homeowner. As a renter, if something goes wrong with the house, you can simply call the landlord, who will have to pay to fix the problem. As a homeowner, all the expense lands squarely on your shoulders. Even if nothing expensive breaks down on you, homeowners have ongoing additional costs such as homeowner's insurance and property taxes.

If you don't budget for such expenses or run short one month, you may end up having to tap into savings to pay for them. And if you don't have a well-funded savings account, you may be forced to turn to credit cards -- and that repair bill will be made even more expensive by interest and possibly fees.

Also don't forget that ponying up a down payment will take a big bite out of your savings. You'll need to make sure you still have a solid emergency fund after you've paid out the down payment and the cost of moving. After all, what's the point of buying home if you'll be too busy fretting about expenses to enjoy it?

For more information on apartments in Ridgeland, SC, contact Auston Chase.

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The Motley Fool



Auston Chase Apartment Homes

59 Summerlake Circle, Ridgeland, SC 29936

Auston Chase Apartment Homes Phone Number Call: 833-292-0330
Auston Chase Apartment Homes Email Address Email Usleasingoffice@liveaustonchase.com
Auston Chase Apartment Homes Google Map View Map
Auston Chase Apartment Homes Facebook Auston Chase Apartment Homes Twitter Auston Chase Apartment Homes Google+ Auston Chase Apartment Homes Instagram Auston Chase Apartment Homes RSS Feed
Opens: Monday-Friday: 9A-6P | Saturday: 10A-5P | Sunday: 1P-5P

$930-$1,495