When you’re hunting for a new home, does making a decision come down to just doing the math? Then, this post is for you! After showing you how much money you save living in our energy-efficient apartments and using our community amenities, we are now breaking down the costs of renting vs. buying a home in Little Rock.

So many people come to us unsure if they want to rent or buy their next home. Buying a home comes with big costs and big responsibilities. Are you ready for that commitment?

Or, is relaxing and enjoying the benefits of a five-star, award-winning apartment community more your style? Let’s find out!

Costs of Buying a Home

If you decide to buy a home in our neighborhood, you first should consider the costs of everything from the purchase price to regular home maintenance. It’s a lot to take in, so get ready to be shown a lot of numbers.

Ready for your first one?

In total, owning a home costs on average $1,809.97 a month here in Little Rock.

Sale Price

According to Zillow home value estimates, the median sale price for a house in our area (zip code 72211) is $188,500.

We are guessing you do not have $188,500 in cash. So, you will likely have a down payment and seek a home loan through a mortgage lender.

Mortgage Rates

Depending on how much you have for a down payment and how high your credit score is, you can expect a 4% to 6% interest rate for a mortgage here in Little Rock.

Not bad for a first-time homeowner!

Let’s say you can make a down payment of 6% of the median sale price for our area. That’s $11,310. Great!

With that 6% down payment, a bank will also look at your credit score. You are doing well and have what is considered a “good” credit score somewhere between 700 and 719. Excellent!

Now, looking at Zillow’s mortgage rate estimator, you could pay anywhere from $885 to $1,020 per month for a mortgage with a 30-year fixed interest rate. It’s $1,278 to $1,333 a month for a 15-year fixed rate.

Closing Costs

In addition to your mortgage payment and your down payment, you need to factor in closing costs. Closing costs can include fees from the mortgage lender, inspectors, appraisers, etc. involved in the purchase of your home.

While closing costs vary, Investopia estimates the average for Arkansas home buyers tends to be less than 1% of the purchase price. So, for a $188,500 home, you could pay up to $1,885 in closing costs.

Property Taxes

The government needs their share, too!

The average property tax rate in Pulaski County is 0.778%. So, a $188,500 house would cost you $1,467 annually in property taxes.

Homeowners Insurance

Having homeowner’s insurance is not an option; it is an absolute necessity.

For the average home in our area, home insurance rates average around $1,717 a year or $143 per month.

Mortgage Insurance

Yes: If you have a mortgage, you also need to pay mortgage insurance.

NerdWallet notes that home buyers putting down less than 20% of their home’s purchase price will also have to pay for private mortgage insurance. That annual cost can be up to 1% of your loan amount, or $1,885 a year.

Utilities

To keep your home running, you will need to pay utilities. Electricity, gas, water, sewer, cable, Internet…it’s a lot to cover!

On average, a residential electricity bill is $105.64 per month in Arkansas. That alone is more than all the utility packages at The Pointe Brodie Creek (see more on that below).

But, that’s not all.

In addition to electricity, you can expect the following monthly payments:

• Cable is $75 a month.
• Internet is $50 a month.
• Water and sewer are another $50 a month.
• Trash is $22 a month.

In total, that’s at least $302.64 a month for basic utilities.

Want to add a trash bin, upgrade your cable package, or water your lawn? Expect your utility bills to just keep piling up.

Extras

Sorry, it’s not over yet!

Don’t forget: renovations cost money. New carpet, tile, paint, etc. all add up.

Then, there are maintenance fees you need to consider:

• Lawn care is probably $40 a visit.
• Pest control is likely another $40 to $50 a visit.

But what about cleaning gutters, driveways, windows, siding, etc.? When these projects pop up, either you must do it yourself or hire someone else to do it.

After all these expected costs, you also must expect the unexpected.

What do you do if your pipes burst? Or, if your refrigerator breaks?

Each incident could cost you hundreds or thousands of unexpected dollars. So, you will need to save several hundred a month just in case something goes wrong in your home.

Costs of Renting a Home

Now, if you rent vs. buy a home, your landlord is responsible for taking care of any surprises.

Everything else is much more manageable, mostly because you pay one person and the monthly fees do not vary.

Here at The Pointe Brodie Creek, all your fees and utilities are paid directly to us. The only separate cost is your electricity bill.

All in all, the average cost of renting vs. buying a home (at The Pointe Brodie Creek) is $1,422.80 per month.

Application Fees

When you apply for a luxury apartment here at The Pointe Brodie Creek, just like a down payment on a house, you have some fees to expect. But, it’s nothing in comparison, of course.

With every application, we require a $50 application fee, $150 administrative fee, and $150 deposit. So, starting off, that’s a total of $350.

Rent Amount

The market prices for our floor plans currently range from $1,099 a month for a one-bedroom apartment to $1,707 per month for a three-bedroom apartment. That makes the average market rent $1,317.80 per month for an apartment in our amazing community.

Utility Package

That base utility price of $302.64 a month you can expect when owning a home? Forget that! You could save $200-300 a month thanks to our convenient utility packages.

Our utility packages cover Internet, cable, trash, pest control, and a monitored alarm system for just $70, $80, or $90 a month.

That’s $70 for one bedroom, $80 for two bedrooms, and $90 for three bedrooms.

Renter’s Insurance

We do not require that residents at The Pointe Brodie Creek have renter’s insurance. But we do highly recommend it.

Depending on how much your personal property is worth, and the liability terms you select, you can get renter’s insurance for $20-$50 a month.

Add-On Amenities

You could live in the lap of luxury here in our community just by paying for your apartment and your utility package.

The only way you would pay more every month is if you added something onto your rent, like a garage, washer and dryer, or gym locker.

Send us a message to get the latest rates on these easy-to-add amenities.

Extras

You know how owning a home comes with property taxes, mortgage insurance, maintenance expenses, and all the unexpected costs? Not at The Pointe Brodie Creek!

Here, you pay your rent and your utilities. That’s it. We take care of the rest!

Plus, if you take advantage of our free community amenities like our Coffee Bar, Movie Theater, and Fitness Center, you could even save an additional $214.92 per month.

Renting vs. Buying a Home

Now that we’ve gotten the hard dollar amounts out of the way, the real question in renting vs. buying a home is, “What would make you happy?”

Would you rather have everything taken care of for $1,422.80 a month, or have all the stress and worry placed on you with a commitment of $1,809.97 a month?

We would rather save $400 a month and enjoy life!

Rest assured, when you rent an apartment here at The Pointe Brodie Creek, it’s more than an apartment. It really feels like a home.

Ready to see for yourself? One of our leasing consultants would love to give you a tour.

Schedule an appointment online now or give us a call at (501) 221-3377.