To answer this question, let’s analyze the real estate market of Scottsdale a little bit. You probably have already done some research yourself so let’s see if we reach the same conclusions. Then, try to find a real estate agent in Scottsdale and ask for his or her opinion regarding whether you should rent or buy in Scottsdale.
First of all, you should know that Scottsdale is a hot market where the demand for housing is greater than the supply and this explains the average cost of a home in Scottsdale. It is a seller’s market, for sure. Secondly, the cheapest properties that pop up on the market are around $300,000. Last but not least, the houses may be spacious, but most of the time they are vanilla shells. For that money, you can’t find fully furbished homes. As you anticipated, that means that you’ll have to spend more money to get the house move-in ready.
As you probably know, on any given home loan, you’ll end up paying quite a lot of interest. So, for a $300,000 home loan let’s say that you end up paying another $300,000 in interest over 30 years. That means that your monthly payments would be around $1,666. But, for a while, you’ll also have to pay off the balance on your credit cards for the furniture, appliances and other home decor items. On top of that, there’s homeowner’s insurance and property taxes. How much does home insurance costs in Scottsdale? It’s said to be cheaper than the US average, so you can expect to pay anywhere between $800 and $1,000 a month. Property taxes are quite low in Maricopa county so let’s assume that for a $300,000 property you’d owe about $1,000 in taxes per year. So, in the end, to own a house in Scottsdale, you would have to take out of your pocket around $1,832 every month. Considering the fact that most financial counselors recommend that you spent less than 40% on housing, your minimum income should be $4,580 per month or $55,000 a year.
With rent, you know the rules: the bigger the home, the higher the rent. But you also have to take into consideration the amenities of the complex you’re about to move in. It might have a heated pool, a gym, or even a dog park - all contributing to your quality of life. What is the average rent in Scottsdale? Well, according to RentCafe, it is around $1,500 for an apartment a little smaller than 1,000 square feet. For a three-bedroom two-bathroom apartment, which is a little over that square footage, the rent is $1,600 in a North Scottsdale complex. Of course, when renting you don't need to worry about home insurance, property taxes, and maintenance, which is a big plus. But you don’t gain any equity in your home either.
What about renting a house in Scottsdale? Well, a $300,000 house has 3 bedrooms and 2 bathrooms spread on 1,600 square feet. For a similar house, landlords ask $1,600 per month. For more luxury and comfort, though, rents jump way above $2,000 per month.
At first sight, renting seems to be cheaper than buying. So, should you rent or buy in Scottsdale, Arizona? The answer depends on how long you intend to stay here. If you envision yourself getting old here and you want to grow roots in this city, then buying is better than renting. If you’re only looking for a temporary residence, then renting is better. Whether you buy or rent, the best thing you can do first is to find a real estate agent in Scottsdale who will fight for your best interests.