Should I Rent Or Buy In Scottsdale, Arizona?

Definition of "Should I Rent or Buy in Scottsdale, Arizona?"

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

Buying a house 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. 

Renting a house in Scottsdale

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.

image of a real estate dictionary page

Have a question or comment?

We're here to help.

*** Your email address will remain confidential.
 

 

Popular Real Estate Questions

Popular Real Estate Glossary Terms

A forced sale or forced liquidation typically means an involuntary sale of valuables or property for financial reasons. If an unpredictable or uncontrollable event emerges, a seller must ...

Derogative term describing a high-pressure telemarketing office where sales personnel often use extremely exaggerated claims as well as intense sales practices to convince targets clients ...

Right of an individual to be offered something before it is offered to others. For example, a tenant whose apartment is going to be converted to a cooperative has the first right of ...

One who has committed a tort. A tort is a civil wrong that occurs as a result of a breach of legal duty owed to someone, e.g., negligence. A tort does not arise from a breach of contract. ...

A portion of a real estate company's assets financed with debt instead of equity. It involves interest an principal obligations. Financial leverage is beneficial to real estate investors ...

The largest financial intermediaries directly involved in the financing of real estate. Commercial banks act as lenders for a multitude of loans. While they occasionally provide financing ...

Sales commission charged to buy shares in a real estate mutual fund sold by a broker or salesperson. Typically, the fee ranges from about 1 percent to 8 percent of the initial investment. ...

maintenance procedures conducted to prevent later repairs and furthering a longer useful life. For example, many boilers and burners are cleaned and serviced each year before the winter ...

The amount of a periodic payment, whether monthly, quarterly, or annually, including interest and principal, required for a mortgage payment. ...