Do you want to buy a home but are worried that you can’t afford it? Many factors determine whether it’s cheaper to rent or buy; however, recent good news may help convince you that it’s better to buy a home than continue to rent.
- Low mortgage interest rates
A recent report from Trulia concludes that for homebuyers who choose a 30-year fixed mortgage,buying is 38% cheaper than renting nationally. Continued low interest rates make home purchase an attractive and affordable option.
- Rising rent prices
A recent RealtyTrac report found that 33 percent of Americans live in markets where the average rent is unaffordable for median income earners. One of the reasons for this situation is that rents have skyrocketed in recent years due to tight supply and increased rental demand. The report also notes that monthly mortgage payments for median priced homes, including insurance and taxes, are less than the average monthly rent for a three-bedroom home in over 90 percent of 1,586 U.S. counties.
- Low breakeven horizon
Zillow’s Breakeven Horizon estimates how long it takes for a homeowner to gain more money and assets from owning a home compared to renting that same home. This value varies widely across the country, but Zillow concludes that in many California counties, the Breakeven Horizon is less than two years.
- Tax benefits
The U.S. government encourages homeownership through tax policy. When you own your home, you’re able to deduct the mortgage interest and property taxes from your income taxes.
- Equity building
Yes, home values took a big hit in the 2008 housing bubble, but prices are on the rise again and people are seeing their homes appreciation potential pay off. Building equity, i.e. savings, through home ownership is one of the best ways to acquire wealth over the long term.
- Stabilized monthly payments
With a fixed-rate mortgage payment, you’ll know what your monthly payment is for the entire life of the loan. Conversely, if you rent, you’re at the mercy of landlords who may choose to raise your rent to a point where you’re forced to move.
Home ownership is part of the American Dream and we want your dreams to come true. Contact us today, and together, we’ll find your perfect home.