I have some clients now who are on the fence. They don’t know if they should buy or rent. Initially they wanted to rent but were having some trouble finding what they wanted. They have a dog and want a yard but can’t find an acceptable rental that allows pets. They are looking for a larger space, preferably a single family home with at least 1.5 baths. And they want it to be nice. Apartment grade finishes just aren’t doing it for them. They are absolutely qualified to buy but just don’t know how long they will be in St. Louis which is why renting seemed more appealing at first. They will definitely be here two years and possibly five but not longer than ten. And that’s why this is a tough choice. They could buy something right now that meets their needs and suits their style for less than would spend on monthly rent. With a purchase there is down payment required and closing cost to pay when they sell. But with a rental it is possible they may have to move every year for as long as they remain in St. Louis. In the end it is really difficult to figure out which is the most economical choice.
Here is an example of their options. One to rent. Another to buy.
Here are some shots of a “private alley house”for rent on CraigsList. It is a 2 bedroom 1.5 bath home listed for $1495/month.
2927 Henrietta is home that is currently listed for $139,900. With just 3.5% down, they could move in and pay less than $1000/month.