Auston Grove Apartments

1160 Auston Grove Drive, Raleigh, NC 27610
Call: 833-779-8856 Email UsAustonGrove.PropertySite.HHHunt@aptleasing.info View Map

Opens: Monday-Friday: 9A-6P | Saturday: 10A-5P | Sunday: 1P-5P

$800-$1250

Apartments Raleigh NC Blog

The Sad Truth About "Investing" in Homeownership – Raleigh, NC

The Sad Truth About "Investing" in Homeownership – Raleigh, NC

Joseph Coupal - Wednesday, July 27, 2016

Settling down and buying a home is often painted as an integral part of the American Dream: You stop paying rent and own your destiny — with a great investment, to boot.

That message certainly seems to resonate with many Americans, at least according to the results of a new survey from Bankrate, which found real estate to be the most popular "investment" that respondents named, ahead of the stock market, gold and cash savings.

The problem?

While homeownership means you're no longer paying your landlord, your pockets won't necessarily be overflowing, either. As Robert Shiller — a Nobel Prize-winning economist who helped create a leading home price index — has cautioned, land and homes do not rise in value faster than inflation, at least over the long term. So not only does investing in real estate carry many costs and risks, but people have developed an exaggerated idea of how much their homes will appreciate in value.

Compared to, say, stocks, real estate is relatively illiquid, meaning that you can't easily buy it and sell it whenever you want; finding a buyer can take a long time. That can be dangerous for homeowners when housing prices take a sudden dive.

Properties also need to be maintained, whether the owner rents it out or lives in it themselves, which can be incredibly expensive: On average, these costs are between 1% and 4% of the home's annual value each year, an extra expense that young homeowners should not forget.

"If it's a home you purchase ... you have a mortgage plus any taxes, plus any insurance that you have to play yearly," said Alexa von Tobel, a certified financial planner. "When you step back and look at that, most people tend to overspend."

Many prospective homeowners underestimate upkeep costs for homes, to say nothing of bigger repairs.

There's a big difference between thinking of your primary residence as a "real estate investment," and actually being a real estate investor who buys and sells investment properties, which can be quite lucrative if you have the necessary capital to get started — provided you know what you're doing.

Over the last 100 years, the price of land has risen by an average of about 1% per year. By contrast, the S&P 500, which tracks the stock prices of major U.S. companies, has grown about 10% per year.

Now, if you are thinking of buying a home, there are plenty of good reasons to do so. The key is recognizing that the purchase is more of a consumption choice (like buying a car), than an "investment," which better describes how one should think of their retirement account.

For more information on apartments in Raleigh, NC, contact Auston Grove.

#HowYouLive
Money


Reduce Stress of Apartment Hunting - Raleigh, NC

Reduce Stress of Apartment Hunting - Raleigh, NC

Joseph Coupal - Thursday, July 21, 2016

Moving is stressful in more ways than one, and it can be especially taxing when you are apartment hunting in Raleigh, NC for the first time. The first thing to do is, of course, relax. Thankfully there are a lot of steps you can take to ease the stress associated with hunting down your first apartment.

Know Your Needs

It’s important to know your specific needs when beginning your search for an apartment. Have pets? Make sure the places you are looking at are pet friendly. Know what your maximum budget is and figure out what exactly your deal breakers are. No laundry in unit or on site? If lugging your laundry to a laundromat on laundry day sounds like a nightmare to you, it’d be smart to look elsewhere. However, remember an apartment can’t have everything, so truly contemplate what you believe to be most important to your new living space and go from there.

The Initial Search

So you know what area you want to live in but aren’t sure of where to start. Well, there’s an app for that. Actually, there are a ton of applications you can download to your smartphone free of charge to make the search less exhausting and actually pretty fun. Two helpful apps are PadMapper and Zillow which both get the lowdown on listed apartments in your area. They have helpful filters so you can easily sort through the apartments that accommodate your specific needs.

Ask Questions

Most people have gone through this experience and would gladly give you the advice or information you need. Spread the word you’re moving into your first apartment and lend an open ear to people who are willing to share some of their helpful tips. One quick way to receive a large amount of feedback is utilizing your social media outlets.

Research

Do some research and learn your rights as a tenant. Just simply being informed with basic information will lessen the weight on your shoulders. Landlord-tenant law vary by state so it is important to get the information specific to where you plan on living. Knowing your rights will leave you feeling more confident and at ease when it comes to signing the lease and contract.

Details, Details, Details!

When viewing potential apartments, look at everything, and I mean everything. Look in closets, check sink and shower faucets, and even give the toilet a flush. It’s smart to take a few pictures to look back on too. If a place is in your price range, don’t sell yourself short. Don’t be afraid to ask the agent about things that are concerning such as typical utility bills or potential leaks. It would be smart to bring a trusted friend with you to a viewing so you can have support and an extra set of eyes to look over potential places.

Trust Your Gut

You know yourself best, and if something doesn’t feel right about a certain place don’t shove that feeling to the wayside. Sure, no apartment is perfect and not everything can always be in our control, but remember you are allowed to walk away from anything you don’t feel comfortable with.

For more information on apartments in Raleigh, NC contact Auston Grove.

#HowYouLive

Empowher.com


Are You Throwing Your Money Away When You Rent? – Raleigh, NC

Are You Throwing Your Money Away When You Rent? – Raleigh, NC

Joseph Coupal - Wednesday, July 13, 2016

There are a number of reasons for wanting to buy a home over renting and most are valid. Some people want to buy because their current rental unit may have restrictions on owning a pet, while home ownership would, in most cases, not have this limitation. Others want to diversify their assets beyond the stock market. Still others may be pressured by friends and family – loved ones may claim you are simply throwing your money away if you rent, but with owning, you could be building equity every month.

Is this really true?

You Are Building Equity As A Homeowner, But…

It is true that you are building equity each month as a homeowner. However, the amount of equity you’re building is equivalent to the portion of your monthly mortgage payment that goes toward paying down principal.

Because most mortgages are structured to have a uniform monthly payment for the life of the loan, in practice, this means that your early payments will consist of more interest than principal. So while you are paying down principal and building equity, you may not be building as much as you imagined.

For example, let’s say you had a 30-year fixed rate mortgage with an interest rate of 4% and a starting loan balance of $500,000. Your monthly payment would be $2,387, but just 30% of this payment or $720 would go toward “building equity” during the first month. Over the first five years, less than 35% of your total mortgage payments go toward paying down principal.

Yes, equity can make you feel good, but it’s not really money you can use freely until you’ve sold the property. And if you end up selling in a down market, you may not end up realizing as much equity as you expected.

You’re Still Throwing Money Down The Drain As A Homeowner

While you are building some equity when owning a home, your monthly housing costs consist of much more than just principal payments on your mortgage. In fact, you could say that mortgage interest, taxes, homeowners insurance, homeowners association fees, and ongoing maintenance costs are all “wasted money” that you throw down the toilet as a homeowner.

People often say that buying a home was the best investment they ever made. The problem is that their return as investors is often worse than they think. When calculating how much they made on a home, most people do not include the out-of-pocket costs they incurred through things like replacing pipes, repairing roofs, or numerous other unexpected expenses that come up. As a tenant, your costs are fixed, but as a homeowner, you are on the hook for any repair that comes up.

The Transaction Costs Are Large For Buying!

The costs of buying and selling real estate are significant, and those costs don’t go toward building equity either.

Buying a house entails many transaction costs that add up to three, four, or five percent of the price of the home and sometimes even more. Many advise that homebuyers should have at least a five-year time horizon or they risk having those transaction costs eat into any gains they were hoping to get out of the sale of their home. Even worse, those costs can lead to a loss, if the local market is soft.

Buying involves commitment and generally, commitment has shown over many centuries to deliver great rewards. It makes sense to buy if you want to commit to a home and location for the long-term. Anyone seeking short-term rewards is better off renting.

Are You Telling Me I Should Rent?

In certain circumstances, it may make sense for you to rent over buy. It really depends largely on your time horizon, financial situation, future plans, and economics of your local area.

Whatever route you choose, just remember to take into account all relevant factors necessary to come to a thoughtful decision. And next time someone tells you you’re simply throwing away money by renting, you can hit him with some knowledge.

For more information on apartments in Raleigh, NC contact Auston Grove.

#HowYouLive
Forbes


In Raleigh, NC Your Paycheck Goes Farther

In Raleigh, NC Your Paycheck Goes Farther

Joseph Coupal - Tuesday, July 05, 2016

Are you considering relocating for a job or for a place where the dollar goes further? You may be wondering which major cities are providing employees with the most favorable combination of wages and cost of living.

Well, Forbes has published a list of the top 25 Cities Where you Paycheck Goes Furthest. To determine this list, job search and salary comparison site Glassdoor considered cost of living as determined by the ratio of median base salary to housing. Median annual base salary for each metro is based on a minimum of 1,000 salary reports shared by employees in that metro on Glassdoor over the past year, April to April.

No. 25 Raleigh-Durham, North Carolina
Median base salary: $62,000

For more information on apartment in Raleigh, NC contact Auston Grove.

#HowYouLive

Forbes



Auston Grove Apartments

1160 Auston Grove Drive, Raleigh, NC 27610

Call: 833-779-8856
Email UsAustonGrove.PropertySite.HHHunt@aptleasing.info
View Map

Opens: Monday-Friday: 9A-6P | Saturday: 10A-5P | Sunday: 1P-5P

$800-$1250