The results of the latest Rent vs. Buy Report from Trulia show that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.
The updated numbers actually show that the range is an average of 3.5% less expensive in San Jose (CA), all the way up to 50.1% less expensive in Baton Rouge (LA), and 33.1% nationwide!
Other interesting findings in the report include:
- Interest rates have remained low and, even though home prices have appreciated around the country, they haven’t greatly outpaced rental appreciation.
- With rents & home values moving in tandem, shifts in the ‘rent vs. buy’ decision are largely driven by changes in mortgage interest rates.
- Nationally, rates would have to reach 9.1%, a 128% increase over today’s average of 4.0%, for renting to be cheaper than buying. Rates haven’t been that high since January of 1995, according to Freddie Mac.
Buying a home makes sense socially and financially. If you are one of the many renters out there who would like to evaluate your ability to buy this year, let’s get together to find your dream home. source: www.simplifyingthemarket.com
Do You Know the Cost of NOT Owning Your Home?
Owning a home has great financial benefits, yet many continue renting! Today, let’s look at the financial reasons why owning a home of your own has been a part of the American Dream for as long as America has existed. Home Buying Process
Zillow recently reported that:
“With Rents continuing to climb and interest rates staying low, many renters find themselves gazing over the homeownership fence and wondering if the grass really is greener. Leaving aside, for the moment, the difficulties of saving for a down payment, let’s focus on the monthly expenses of owning a home: it turns out that renters currently paying the median rent in many markets could afford to buy a higher-quality property than the typical (read: median-valued) home without increasing their monthly expenses.” Home Buying Process
What proof exists that owning is financially better than renting?
1. The latest Rent Vs. Buy Report from Trulia pointed out the top 5 financial benefits of homeownership:
- Mortgage payments can be fixed while rents go up.
- Equity in your home can be a financial resource later.
- You can build wealth without paying capital gain.
- A mortgage can act as a forced savings account
- Overall, homeowners can enjoy greater wealth growth than renters.
Read more Home Buying Process below…
Renting Vs. Owning After You Retire
There has actually been an increase in older renters over the last 10 years. Those over the age of 55 actually contribute to about 42% of the rental market now. This percentage is projected to increase as Baby Boomers presumably follow the same path. Home Buying Process
It’s important to understand the pros and cons however of choosing between renting and homeownership. Let’s break each one down so you can better decide theater or not you should spring for that home after retirement. Home Buying Process
Pro: Bye Bye Mortgage
If a really big focus for you is the fact that you’re still having to chip away at that mortgage then clearly you’ll be happy to rent. One less thing to worry about when you finally retire. You might even find a place to rent that has a lower monthly cost than your mortgage did. So you do have the potential to be saving money here. Home Buying Process
Con: Bye Bye Tax Breaks… continue reading click the link below