Rent vs. Buy on Hilton Head Island
Do you dream of living on Hilton Head Island? Are you budget conscious? Good news! Iit is now cheaper to own a home rather than renting a similar home on Hilton Head Island. Based on the low mortgage costs and the attractive pricing the Island offers, the buyer in our example saved approximately 12% extra* per month. With the rising costs of rents and a limited availability of good rental properties, future residents should consider buying property rather than renting a property in the current market.
Cost to buy vs rent on Hilton Head Island
As an example, we have listed the expenses of owning vs. renting a $500,000 property on Hilton Head Island below. These costs are based on a current 30 year conforming loan of 4.5% and a full time resident tax rate based on a 4% millage. This home has been rented for $3,000 per month for the past 3 years. Common expenses for both renter and owner would be electric, trash, propane and yard maintenance. This does not include costs of renters insurance, appreciation, down payment costs or maintenance.
Ownership Costs
Mortgage ~ $2,026.00
Insurance ~ $ 300.00
Taxes ~ $ 200.00
Pest Control $ 30.00
Community fees $ 150.00
total $2,656.00 vs. rental $3,000 per month
What’s the risk of renting a property on Hilton Head Island for a year or two?
Besides spending more money, Hilton Head renters may lose the opportunity of great selection, excellent pricing, low interest rates and the chance to build equity if they choose to rent a property versus buying a property on the Island. As well, many renters also put themselves into a position that requires additional moving expenses and increasing rents. If you would like to explore renting vs. owning on Hilton Head Island, contact us at robbie@robbiebunting.com or call us at (843)842-0805. Start your search for an excellent property and watch the visual tours here.
*Variations to cost and rent may occur. This is based on a real example of a home located on Hilton Head. This homes price two years ago was $699,000 and today the listed price is just under $500,000 which improves cash flow and puts it in the buyers favor.
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