Sunday, August 21, 2011

Is Buying A Home Cheaper Than Renting?

If you're renting and have thought of owning a home, now may be a good time. Trulia is reporting that during the month of July, buying was cheaper than renting in 74% of the country's 50 largest cities.

What's tipping the scale to make buying cheaper than renting? It's the combination of declining home prices and historically low interest rates. Today, interest rates for 30-year and 15-year fixed have been hovering near 4%. Also, the increased demand for rental units is pushing rents up, making now a good time to buy. The current environment is making purchasing a home enticing for those who are planning to stay in a location for several years and have money for a downpayment.

If you're renting now and wondering is this the right time, it depends on your particular circumstances. Timing the real estate market isn't a perfect science. However, the indicators are strong that if you can afford to buy, today's market certainly offers many good opportunities.

All The Best,

Herb Johnson

859-372-8019 Direct Line Email Website

Buyers and Sellers wanted. Referrals Appreciated!

1 comment:

  1. If you'll just be living in the house a few years or the fee is low, then renting can be a sensible option. In most cases, it's better to own a home rather than to rent as you get to pay money towards owning your own property. A home loan, however, is a long-term and substantial amount of debt so it's important that you evaluate your job stability and financial status before you decide on.

    David from