16 Aug Moving to the City Saves Money?
Sure, real estate outside the city may look cheaper… but how many families can get by these days with just one vehicle? The cost of cars is going up, while the cost of real estate has come down, thanks to the collapse of the housing market.
You can do the math.
Interest is at an all-time low.
According to the American Automobile Association, the average car costs about $9,000 a year. That includes about $3,500 in depreciation, as well as $5,500 in gas, insurance, maintenance and so on. Two cars in a family means about $18,000, especially since the long-term fuel costs are probably heading higher.
It produces some very interesting numbers. With current mortgage rates, even $9,000 a year would pay the net interest on a $300,000 mortgage. In other words, moving back to the suburbs means you’d need to find a home for $300,000 LESS than your current Intown home just to break even.
Naturally, many people will make this type of decision based on quality of life. But it’s fascinating to realize that the sticker on the price of city real estate is actually misleading.
What do you think? Does city living save money in the long run? Share your comments below or post them on our Facebook page!