Buying Remains More Financially Beneficial Than Renting - But With Risks

Written by Posted On Thursday, 27 February 2014 13:18

Acoording to Trulia, buying a home costs less than renting in all 100 large U.S. metros. This is always a popular topic and while broad assumptions are made, ultimately there are many variables impacting each situation. Rising mortgage rates and home prices have impacted things just as rising rents have. Trulia’s “owner” has a 30-year fixed rate mortgage of 4.5%, put 20% down, itemizes deductions, is in the 25% tax bracket and will be the home 7 years. In that case, buying is 38% cheaper than renting nationally, versus being 44% cheaper at the start of 2013.  While renting is more expensive, only half of potential home buyers have credit that would get such a rate, and many first-time home buyers are struggling to form households or get out from under student debt. The range of difference also depends on the area of the country examined.

Ownership isn’t for everyone. Buying a home is a highly personal decision to make and if done wrong, financial disaster can ensue. Potential buyers should take the time to study the pros and cons, the Trulia Report on this topic is a worthwhile read. And it bears repeating that the single most important aspect of the home buying process is learning how to properly choose a real estate agent; success or falure begins there. Click on the map to see the interactive chart.

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Hank Miller, SRA

Hank Miller is an Associate Broker & Certified Appraiser in the north metro Atlanta area. Since 1989, real estate has been his full time profession. Hank´s clients benefit from his appraisal and sales experience; they act upon data, not baseless opinions. He is an outspoken critic of the lax standards in the agent community.

Hank remains an active certified appraiser and completes specialty work for FNMA, lenders and attorneys. He is a well-known blogger and continues to guest write for multiple industry publications as well as national outlets like the WSJ, NYT, RE Magazine, USA Today and others. He is a regular on public Q&A sites on Zillow, Trulia and many others.

Hank consistently ranks in the top 1% of all agents in the metro Atlanta area. He runs the Hank Miller Team and is known as much for his ability as he is for his opinions. He is especially outspoken about the lack of professional standards and expectations in the real estate industry.

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