Auston Woods Apartment Homes Blog

In the American mind, renting has long symbolized striving rather than achieving. But as we climb our way out of the Great Recession, it seems something has changed. Americans are getting over the idea of owning the American dream; increasingly, they're OK with renting it.
 
Home ownership is on the decline, and renting is on the rise. But the trend isn't limited to the housing market. Across the board, Americans are increasingly acclimating to the idea of giving up the stability of being an owner for the flexibility of being a renter. This may sound like a decline in living standards. But the new realities of our increasingly mobile economy make it more likely that this transition from an Ownership Society to a Rentership Society.

The unsentimental fact about the American dream is that Americans never really owned it in the first place. For the past three decades, especially, consumers haven't so much bought their quality of life as they've borrowed it from banks and credit card companies.

Now consumers are following the example of corporations, becoming more efficient. And it starts at home.

Housing is the biggest single component of consumption in the U.S. economy and the source of much of our present misery. The typical consumer spends about 32% of his or her budget on shelter. In the last decade, that generally meant borrowing a lot of money to take "ownership" of a home.

During the boom, the home ownership rate grew steadily, peaking at a record 69% in 2006.

Ownership-boosters failed to note that homes purchased in 2005 and 2006 with no-money-down, interest-only mortgages weren't really bought. They were simply rented until the "owner" flipped them or walked away from the mortgage.

In the post-bust climate, renting has emerged as a much more economically efficient way to pay for housing. A one-year lease represents a far less onerous financial obligation than a 30-year mortgage. It's difficult to get into too much financial trouble as a renter. The homeownership rate has fallen from its peak in 2006 to 65.4% today.

For an increasing number of Americans it makes more sense to rent. According to Moody's, by late 2011 it was cheaper to rent than to own in 72% of American metropolitan areas, (such as Charlotte) up from 54% a decade ago. And the more people who do it, the more socially acceptable and desirable it becomes. The decline in the ownership rate means that about three million more households rent today than did at the height of the bubble.

It's tempting to view the rise of renting as an economic step backward. But many would argue the rise of renting is a sign of a system adapting to new realities.

The U.S. economy needs the dynamism that renting enables as much as, or more than, it needs the stability that ownership engenders.

And the rising popularity of renting is hardly contained to the housing market.
 
Finally, perhaps, Americans are absorbing a piece of wisdom from Thoreau: "And when the farmer has got his house, he may not be the richer but the poorer for it, and it be the house that has got him."

For information on renting an apartment in Charlotte, NC, contact Auston Woods.

Wall Street Journal

It is May, and if you live in an apartment in Charlotte, NC you know what that means. May is NASCAR month in our city.
 
Each May, NASCAR takes the stage in Charlotte and all things involving speed and racing rule.  The action takes place at Charlotte Motor Speedway for the NASCAR Sprint All-Star Race on May 19. This race is the best of the racers, and is 100 laps for $1 million. The All-Star Race regularly produces some of NASCAR’s most exciting moments.

Before the race, don’t miss the concert in the infield between turns 1 and 2. Blake Shelton, three-time GRAMMY nominee, CMA’s reigning Male Vocalist of the Year and a coach on NBC’s “The Voice,” will perform prior to the NASCAR Sprint All-Star Race!

The Sprint All-Star Race is followed by the Coca-Cola 600 on May 27.  This is NASCAR’s only 600-mile event. With a patriotic salute to the U.S. armed forces, the 53nd running of the Coca-Cola 600 is a Memorial Day Tradition. Also head to Center City for the Food Lion Speed Street 600 Festival May 24 – 26 celebrating 18 years of NASCAR-themed, family-friendly fun, Food Lion Speed Street itself is an experience with live entertainment, access to NASCAR’s brightest stars, and vendor displays.
 
Enjoy NASCAR in May in Charlotte.

There is more information on NASCAR events in May on www.charlottesgotalot.com

Low mortgage rates and more affordable home prices  in Charlotte are creating an interest in homeownership by those who live in apartments. However, potential buyers who are unprepared for the true cost of owning a home may be shocked by the bite homeownership can take out of their wallet in addition to their mortgage payments.

Inspection and Appraisal Fees
Before you purchase a home, you need to pay for a home inspection, and an appraisal, possible even inspections for pests or radon. The costs of these inspections are borne by buyers and are a necessary protection to avoid buying a flawed property or paying too much.

Closing Costs
Buyers need to be prepared with the cash for anywhere from 2% to 4% of the mortgage balance depending on your area.

Taxes
As a homeowner, you'll need to pay property taxes, which are generally part of the escrow you pay into each month. Remember, even if you have a fixed-rate home loan, your property taxes could go up and increase your monthly housing costs.

Insurance
Your lender will require home insurance, the cost of which depends on factors including the construction materials of your home and the location. Even if you have renter's insurance, you'll find that home insurance costs more because you are paying for the ability to rebuild your home in addition to replacing your personal possessions. Insurance costs will rise over time, and you will need supplemental insurance if you live in a flood zone.
 
HOA and Condo Fees
If you buy a home within a homeowners' association or a condominium association, you'll be required to pay a monthly or quarterly fee. These fees can rise, or your association may need to charge a special assessment for projects such as repaving the parking lot or repairing a roof.

Utility Bills
Depending on where you live, your costs for electricity, gas and water could be higher when you move into your own home than when you live in an apartment in Charlotte, NC. You may also need to pay for garbage collection along with your Internet, cable and phone bill.

Furniture
While this is essentially a discretionary expense, most people who move from an apartment to a larger home need to buy at least some new furniture.
 
Lawn Care
Whether you handle your yard work yourself or hire a professional, you will have to pay something to keep your landscaping in check. Lawn equipment can be costly and you may need a snow blower or a leaf blower, too.

Maintenance
Home maintenance costs time and money. While you may be able to change your furnace filters, clean your gutters and keep your appliances running smoothly yourself, you may also need to hire a contractor to clean and inspect your chimney and to keep your heating and air conditioning system in top shape.

Repairs
While maintenance tasks can be predictable, the most costly part of homeownership typically comes with unexpected repairs such as replacing or repairing the roof, removing a tree, or paying for mold mitigation in a damp basement. The list of possibilities is endless, so homeowners should set aside savings for an emergency. Experts suggest budgeting for 1% or 2% of your mortgage balance as a yearly maintenance and repair fund.

The Bottom Line
Buying a home costs more than you think. If you don’t expect to stay in your home for at least seven to 10 years, contact Auston Woods Apartments.

SF Gate

More couples are saving cash by opting to rent rather than buy. That dream of walking down the aisle and buying the perfect home is becoming a thing of the past. According to Zillow.com, apartment vacancy rates have fallen from 8% in 2009 to just 5.6% at the end of 2011.

Jay and Jessica Masanotti have been married for 5 years. During their first year of marriage they bought a house South Carolina in hopes of following the traditional American Dream, “You get married, buy a house, have kids, that’s the American dream; buying a house was the next step."
 
They figured the home would be a good investment, but now admit that they didn’t know what they were getting into.
 
But a new job in the Charlotte area put that newlywed home in an unsettling market. No matter what happens going forward, they will lose money on the house, "We bought it in 2 days and in 6 months, and we got nothing. It’s a great house but we will have to take a hit just to sell it and just to get it out from under us so we don't have that financial burden any longer."
 
If young couples are thinking about buying a house that they need to be prepared to make a long-term commitment. If buyers cannot commit to settling down in the area they are looking to buy, you’re better off renting. Renting offers flexibility and freedom to walk away and you can call someone else if something breaks or goes wrong.
 
Charlotte is seeing a big uptick in people renting. Rentals is this economic climate offer some big opportunity. Renting an apartment in Charlotte, NC  is a way to have what you want right now without having to wait until you can afford it.

For Jessica and Jay, renting in Charlotte has done just that, “It afforded us an opportunity to live in an area where we could never afford to purchase a house."
 
For more information on renting an apartment in Charlotte, NC,  contact Abberly Green.

Original article – Fox Charlotte

One of the most popular home ownership myths in Charlotte, NC is that owning a house is a huge tax break as compared to renting.  I don’t know how many times people have personally told me that they want to buy a home because they NEED a tax deduction!  I just shake my head in disbelief because I have done the math.  

If your mortgage interest and other qualifying expenses such as charity contributions aren’t more than the standard deduction, ($11,600 for joint filers in 2011), there is no tax advantage to owning a home as opposed to renting an apartment in Charlotte, NC.  Assume that you buy a $200,000 house with a 5% downpayment at a 6% interest rate.  Your mortgage interest for the year would be $11,336.  The Standard Deduction for joint filers is $11,600.  

In this example, there is NO TAX BENEFIT.  Even when there is a tax benefit, you most likely paid much more money to maintain the house than you are saving in taxes.  If your mortgage interest is more than the standard deduction and you choose to itemize, there is little to no advantage.  

For example, assume that your mortgage interest in 2011 is $15,000.  You would get to deduct an additional $3400 if you itemize BUT you spent $15,000 in mortgage interest to save $850 on your taxes (assuming 25% tax bracket).    

Don’t forget that you would also have all of the other expenses of home ownership that you would not have incurred when renting an apartment in Charlotte, NC in an HHHunt community.

Living in an apartment in Charlotte, NC you know this town has a lot! The Carolina Renaissance Festival is still going on through November 20th. It is a medieval amusement park, an 11-stage theater, a 22-acre village marketplace, an interactive circus, arts and crafts fair, a jousting tournament and a feast. This is a family adventure!

Each weekend, the Carolina Renaissance Festival has over 20 acres packed with good eats and spirits all in Huntersville, near Charlotte.  After eating and drinking, visit 11 stages of music and comedy shows, jousting, and walk the festival village with over 500 costumed characters.  

The village marketplace has over 100 shops.  Buy handmade items such as blown glass,  leather goods, and jewelry.  Some of the artisans create their wares right before your eyes!

Enjoy special Celtic performances by local guest musicians.  Wear a kilt and show off your legs and win prizes in the Knobby Knees Contest at the Haven at 1pm.

Sit back and relax or become a part of the action. The Carolina Renaissance Festival is one of the most interactive entertainment shows Charlotte has to offer. If you plan on going in costume, stop by the office at Auston Woods and let us see.

Living in an apartment in Charlotte, NC, you certainly know how much this town can be. But October brings with it a special kind of fun only Halloween and Oktoberfest can bring. Auston Woods Apartments wants you to enjoy October, here are some events around town from Charlottesgotalot.com:

Running through October 30, SCarowinds unleashes more than 400 creepy creatures, zombies and beasts just in time for Halloween.  Eleven nightmarish mazes and fright zones keep you on your toes, while two live spirited shows will have you screaming your heart out.  For the wee ones, the park hosts Kids' Howl-o-Fest by day on weekends with Boo Blast activities ranging from the Mumpkin Patch to Trick-or-Treat Spots to a Foam Pit Zone.

Relax with a cold one at Charlotte's hometown brewery during Mecktober Fest at Olde Mecklenburg Brewery in October. Bands, food, and beer bring this German-style festival to life for the third annual year in South End.  Then, one of this month's hottest tickets returns to Metrolina Tradeshow Expo October 8.  Charlotte Oktoberfest taps will be flowing with more than 350 craft brewed beers from across the Southeast and around the world.

Both maddening and mesmerizing all at the same time, the Amazing Maize Maze at Historic Rural Hill sends you on an outdoor adventure in an intricate seven-acre labyrinth of corn.  This year's fitness theme is the key to the kernels of knowledge and map pieces that will guide you to the finish line.  Meanwhile, ghost tours by Carolina History & Haunts and Charlotte NC Tours guide you through Center City's supernatural sights.  New this year, Charlotte NC Tours offers haunted segway and bicycle rides.

When deciding whether to rent or buy, you are making the choice to rent an apartment home or renting the capital needed to buy a home. Most Americans don't consider that they are renting equity (from the bank) to buy a home. As you are aware, very little equity is built in the first few years of paying a mortgage. Many people are surprisingly still very unaware of this fact.

This following article explains how renting is financially better than buying in about 75% of cases!

For the Past 30 Years, Renting Was Generally Better Than Buying

If homeownership is the American dream, then the nation had better wake up. That's the message from a new research paper that examines whether buying or renting a home was a better financial decision over the past 30 years. Most would find the result surprising: over the period Americans were better off renting between 65% and 75% of the time, depending on the investment alternative.

The article essentially looks at eight-year periods and assumes that a person invests the money he or she saves by renting. Since buying is generally more expensive than renting, renters have extra money to invest. It also makes a number of assumptions favorable to homeownership, including gains from the mortgage interest tax deduction, the option to refinance, and the ability to walk away -- loss-free -- from an underwater mortgage. Still, renting wins approximately three-quarters of the time.

The staff at economic research organization e21 explains why this result actually shouldn't be so shocking:

Counter-intuitive as the finding may be to some, it is actually quite logical. Unless someone possesses the cash necessary to buy a residence, he or she will be renting one way or another. The choice is between renting the property directly or instead renting the capital necessary to buy the property. The amount of capital to be rented is a function of house prices, while the bulk of a mortgage payment is interest, which is the rental payment on this capital. After 2 years, the typical 30-year amortizing mortgage balance has been reduced by less than 3%. This means that a household that took out a $300,000 mortgage with a 5% interest rate to buy a home has only reduced its mortgage balance by $8,600 after two years despite spending nearly $39,000 in total over this period.

Housing advocates may respond by pointing out that at least the $8,600 in this scenario went towards home equity rather than simply being squandered on rent. But, as demonstrated in the Real Estate Economics article, the principal component of each mortgage payment - i.e. the portion of the mortgage payment that goes towards reducing the principal mortgage balance instead of interest - is an added expense renters don't have.

This turns the real estate industry's biggest talking point on its head: you aren't throwing rent into the wind each month, you're casting away equity.

Of course, that equity also provides a potential benefit. The analysis's eight-year rolling methodology appears to miss the biggest reward of owning a home: living rent-free once the home is paid off. After that 30-years is up, the longer a family remains in that home rent-free, the more buying pays off. Taking this into account would almost certainly change the result in some, if not all situations. Renting may be a better option initially, but there's no eventual reward.

An important point still needs to be made here: buying a home that you don't plan to live in for an extended period of time probably isn't a great idea. The rent you pay in the form of interest on a 30-year loan for five or even 10 years won't be any better than if you had just rented outright. But if you're planning on living in a home for 30-plus years, then you could potentially get some benefit from buying rather than renting.

Original article by By Daniel Indiviglio, The Atlantic

Are you trying to find a great place to retire? The perfect city to move to now that you’re a college graduate? Or a city in which to get a new start during mid-life? Here’s one idea: Charlotte, NC.

What cities are best positioned to grow and prosper in the coming decade? Forbes and the Praxis Strategy Group did a study to determine the The Next Big Boom Towns In The U.S. and found Charlotte number 8.

They started with job growth, not only looking at performance over the past decade but also focusing on growth in the past two years. That was one-third of the score.  The other two-thirds were made up of demographic factors, all weighted equally. These included rates of family formation, growth in educated migration, population growth and, finally, a broad measurement of attractiveness to immigrants — as places to settle, make money and start businesses.
They focused on these demographic factors because college-educated migrants (who also tend to be under 30), new families and immigrants will be critical in shaping the future. 

Two advantages this rising Southern city, No. 8 Charlotte, N.C., possesses is a mild climate and smaller scale. Even with population growth, it does not suffer the persistent transportation bottlenecks that strangle the older growth hubs. At the same time, this city is building the infrastructure — roads, cultural institutions and airports — critical to future growth. Charlotte’s bustling airport may never be as big as Atlanta’s, but it serves both major national and international routes.

So if you are looking for a fresh start, look for an apartment in Charlotte, NC.

Charlotte is one of the top 10 fastest growing cities in the country with new residents coming to town daily. At Auston Woods, we’d love to help you get settled into this sprawling, growing area.

There are many options when it comes to finding a home too. From apartments in Charlotte, NC to old historic homes, there is something for everyone. With the many career opportunities this growing city offers, many people continue to move to Charlotte. There is much to see and do, and exciting night-life, and so far, the city has remained affordable.

If you are just moving to Charlotte and you don’t know too much about the area, it might be smart to consider renting. With a ready-made community, fitness and pool facilities on-site to assist you in making friends, an apartment community might be just what you need to quickly make Charlotte your home.