To Buy or Rent

Its a buyers market, therefore we say BUY! Home prices have dropped and will only go up. Minimal interest rates and the cost of rental properties on the rise, now is the time for renters to really consider buying house. HouseSavvy, a premier real estate & relocation organization agrees with us.

When housing bubble burst in 2006, the cost of buying a house was higher then renting, but now the tables have turned. Rental cost had remained on the higher side in many communities. If you combine the decrease in home prices, high rental costs and historically low interest rates; the time may be ideal for renters to consider buying.

Deutsche Bank recently did a study that reported the share of income Americans are now paying to own their homes is 9.8% after mortgage, further says that in 28 out of the country’s 54 major markets, its now less expensive to pay a mortgage and other major housing costs than to rent the same house.

If you are still on the fence, make your own analysis. Make a list of the total cost to rent a home or apartment, include tenants insurance, and maintenance/association fees. Then make a list to determine the cost of buying a house. You are going to have to do some research, search for houses for sale in your price range and find out the prices of comps or similar homes that have been selling recently. Your Realtor can also help you to do this. Once you figure out a price for the home ask you Realtor to estimate what the real estate taxes and utilities and insurance cost for a home at this price. Then lastly talk to a local bank or mortgage broker to find out the cost and availability of the mortgage needed to buy the home.

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