Buying Remains 36% Cheaper than Renting!


Again an article about why buying a home is so much better than renting.  If you look on the map below you will see that Florida is rated “a lot cheaper to own”.  I know as a property manager that our rent rates have been rising at an alarming rate over the last couple of years.  It is difficult for a young family to find housing they can afford especially if they only have one income.  With our 100% financing and 3.5% downpayment mortgages it is definitely time to be looking into buying a home of your own instead of paying for someone else’s mortgage.  Get into a home of your own and pay your own mortgage off with your hard earned money!

In the latest Rent vs. Buy Report from Trulia, they explained that homeownership remains cheaper than renting with a traditional 30-year fixed rate mortgage in the 100 largest metro areas in the United States.

The updated numbers actually show that the range is an average of 5% less expensive in Orange County (CA) all the way up to 46% in Houston (TX), and 36% Nationwide! 

A recent study by GoBankingRates looked at the cost of renting vs. owing a home at the state level and concluded that in 36 states it is actually ‘a little’ or ‘a lot’ cheaper to own, represented by the two shades of blue in the map below.

Buying Remains 36% Cheaper than Renting! | MyKCM

One of the main reasons that owning a home has remained significantly cheaper than renting is the fact that interest rates have remained at or near historic lows. Freddie Mac reports that rates fell again last week to 3.43%.

Nationally, rates would have to rise to 10.6% for renting to be cheaper than buying – and rates haven’t been that high since 1989.  

Bottom Line

Buying a home makes sense socially and financially. If you are one of the many renters who would like to evaluate your ability to buy this year, let’s get together and find you your dream home.

Courtesy of Keeping Current Matters August 2016

Remember it is always toasty in Naples and you deserve your piece of Naples sunshine and to be paying your own mortgage.  Call me so that we can discuss your options.

Comments are closed.