Most people think renting is cheaper than owning. In most normal markets, those people would be correct–meaning, if you compare monthly rent to monthly home ownership costs, the rent should be less expensive. However, in today’s buyer’s market, most markets have cheaper ownership costs than rental costs. Check out this recent article where Trulia proves this point.
Understand what this means
Monthly home ownership costs are more than just your mortgage payment. It should also include the monthly pro rata share of annual real estate taxes, homeowners insurance, HOA dues and even the credit you get on your taxes (you can write off interest paid on a mortgage).
This type of an environment is created by a number of things, the perfect storm if you will; and they rarely come along.
Rental rates are up across the board. Why? We’ve all heard that millions of people are being foreclosed on. All these people who previously owned, are now renting. This added demand for rental inventory is driving up rental rates making the cost of renting higher than in a normal market.
Home Ownership costs are lower than they’ve been in the last 10 years. Prices are back down to 2002 levels. Interest rates are at all time lows.
This means you could be building equity in your new home, while at the same time saving money each month. Contact us today at 1-800-287-1808 to work with an expert broker and capitalize on this rare opportunity.
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