Renting Vs Buying
As we pass through the New Year and all of the holiday festivities, the Real Estate Market is beginning to heat up once again. The National Association of Realtors is forecasting a 15% to 20% increase in sales, and at a time when the housing inventory is at an all time low. One segment of inventory that has remained consistent over the past couple of years is the supply of rental property. Fueled by a combination of investors jumping into the market and homeowners unable to sell homes due to underwater mortgages, rental properties have held their own when it comes to supply vs demand, and as a result rental pricing has remained relatively stable.
Consumers on the move have plenty of hoops to jump through when it comes to buying a home because the mortgage industry continues to tighten its prerequisites for obtaining a mortgage, and if you are contemplating purchasing a home that is a short sale or Bank-owned, you better be prepared for a long wait that statistically results in more disappointments than wins. As a result, many prospective home buyers end up renting. But is this the best financial choice? Home buying just might be worth a little "hoop-jumping" for some consumers.
In most cases, because of the low mortgage rates, a home buyer will pay $500-$600 per month less for the same home that a tenant is occupying. And with home values finally stabilizing and heading in a more positive direction, the prospect of future equity certainly out weighs paying for someone else's mortgage.
For those interested in a better understanding of the cost of renting verses the cost of buying, I came across this link featured in the New York Times: http://www.nytimes.com/interactive/business/buy-rent-calculator.html
Of course if you have any questions regarding buying, selling, renting or investing in real estate, DeHanas Real Estate is here to help! Call us at 301-870-1717.
