LifeByTheBeach

Buying is Cheaper Than Renting, According to CNN Money

Posted on: September 23, 2011

According to CNN Money, it’s now cheaper to buy a two-bedroom home than to rent one in most major U.S. cities. The reason for this shift is the decline in home prices, along with the fact that the demand for rental units has greatly increased. “Back in the day” (2006), the cost of buying a house was considerably higher than renting that same house in most areas. In today’s market, the opposite is true.

In 74% of the country’s 50 largest cities, buying was cheaper than renting. This data comes from real estate website Trulia, for the month of July. Renting was cheaper in just 12% of the cities, including New York, San Francisco, and Seattle. Renting was less expensive than, but close to the cost of buying in the remaining 14% of cities.

Along with the decline in home prices, the historically low interest rates have further tipped the scales in the direction of buying. In addition to these historically low interest rates, the tax benefits of home ownership sweetens the deal even more. And to further point out the advantages to buying, a study by Deutsche Bank reported that the share of income Americans are now paying to own their homes is 9.8% after mortgage, taxes, and insurance payments – down from 17.2% at the housing bubble’s peak.

Spokeswoman for Trula, Daisy Kong, says, “It’s a personal decision, of course. But if you have a steady job and you are planning to stay for seven years or more and have enough cash to put 20% down and enough left over for seven or eight months of expenses, you’re better off buying in most places.”

The combination of reduced home prices, high rental costs, and historically low interest rates makes it the ideal time for renters to consider buying. If you are ready to make the move into home ownership, I would love to help you find your perfect home. Call or email me and we can discuss your options!

Source: http://money.cnn.com/2011/08/16/real_estate/buy_rent/index.htm and HouseSavvy

Whether you are buying or selling, it would be my pleasure to represent you! 

Please call or email me today to review your real estate needs!

Contact me, Carolyn Smith at:

Phone: 321.271.0870

Email: CarolynSmithRealtor@gmail.com

http://www.CarolynSmithRealtor.com

1 Response to "Buying is Cheaper Than Renting, According to CNN Money"

[…] 12.1% of the median family income in the United States. Furthermore, according to Money Magazine, it is cheaper to buy than rent in 98 of the top 100 metro areas! According to IHS Global Insight economist Patrick Newport, this […]

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