Tuesday, September 25, 2012
Many factors go into deciding whether or not to purchase a home. But, if you are able to buy, it’s been proven to be the cheaper route. Trulia.com announced two weeks ago that in America’s 100 largest metropolitan areas, buying a home is more affordable than renting.
Asking home prices have risen by 2.3% year over year, however, rents have risen more (4.7%). This means that home prices are lower relative to rents than they were a year ago.
Mortgage rates have also fallen. The best rates this summer have been around 3.5%, while last summer rates were closer to 4.5%. With rates that low, it makes home buying a powerful option.
There are several other factors to take into consideration when making these calculations, such as tax deductions and the length of time that you plan to remain in your home. You get the best savings by staying in your home seven years or longer. Seven years is the average amount of time a homeowner remains in their property, so for most people, this cost savings will be high.
The decision to rent or buy a home is very personal. There’s a strong emotional component: some people want the security of homeownership and others want the footloose freedom of renting. Affordability is at an all-time high and renting is no longer viable as the cheaper option. If you are able to buy a home, now is the time to do it!