It's Cheaper to Own a Home Than to Rent
Since the glut of foreclosures began several years ago, previous home owners flooded the rental market, causing the cost of renting to go up slightly. While this was happening, the cost of homes was going down. As a result, in 72% of US cities, it makes more financial sense to buy a home than to rent it. In a recent study conducted by Real Estate website, Trulia, median home prices were compared with median rental prices on apartments, condos and townhomes. Trulia CEO, Peter Flint says "Following the principles of supply and demand, renting has become relatively more expensive than buying, in most markets.
The local market has seen a dramatic shift in rental inventory over the past several months. During the last quarter of 2010, we saw an average of 500 units of rental inventory available, compared to less than 100 now, and the supply continues to drop. As the rental inventory becomes limited, the quality of the property goes down, while the prices inch up.
In addition, property owners tend to want better qualified renters with better credit. In some cases it is not only cheaper to buy than to rent, it is also easier. With some banks having relaxed their tight standards renters with lower credit scores have another option. Wells Fargo is now offering loans to home buyers with as low as a 500 score.
For more information on rental properties or puchasing a home, call 800-842-0190 or e-mail at [email protected]