Stop Renting

In the latest Rent vs. Buy Report from Trulia, they explained that home ownership remains cheaper than renting with a traditional 30-year fixed rate mortgage throughout the 100 largest metro areas in the United States.

The updated numbers actually show that the range is from an average of 16% in Honolulu (HI), all the way to 55% in Sarasota (FL), and 35% Nationwide!

The 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. “In the past year, these two trends have made homeownership even more affordable compared with renting.”
• Some markets might tip in favor of renting if home prices increase at a greater rate than rents and if – as most economists expect – mortgage rates rise, due to the strengthening economy.
• Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.  

Renting vs. Owning

Renting:

• No potential Tax Deductions
• No Return on Money
• Potential Landlord/Tenant Issues
• Potentail Lease/Rental Agreement Hassles

Owning

• You get to select an area of your choice
• Equity builds up - it's like putting your renting money in the bank
• Tax deductions
• It's YOUR home - pride of ownership

Some questions to ask yourself when considering buying a home:

How long do you expect to be in the home? The longer you plan to stay, the better off you are buying. That’s because buying and selling cost money – and require a significant amount of time and effort.

Do you have savings for a down payment? It’s possible to buy a house with as little as 3.5 percent down payment with a Federal Housing Administration mortgage. The down payment can even be gifted to you.

Are You Ready to Take Care of a Home? Along with the joy of decorating your home and changing it to meet your needs, you need to budget at least 1 to 3 percent of the home price each year for repairs. Whether you can handle work yourself or need to hire contractors, you should be prepared for the time and expense of maintaining your property. Doing your own repairs and maintenance can be a great way to feel pride of ownership.

Bottom Line

Buying a home makes sense socially and financially. Rents are predicted to increase substantially in the next year, lock in your housing cost with a mortgage payment now.

Find out if you can buy a home - call The Gary & Nikki Team today: 727-787-6995.