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.
- See more at: http://hankmillerteam.com/2014/02/27/buying-is-38-cheaper-than-renting/#sthash.GCld5b8s.dpuf
