With interest rates still at historic lows and prices slowly but surely rising, it’s no surprise that a common question among many potential buyers is whether they should be renting or buying. Here’s a look at what our knowledgeable team had to say:
“The benefits of owning a home in today’s market is still cheaper than renting despite rising home prices. Even though asking home prices rose 7.0 percent in the last year, outpacing rent increases of 3.2 percent, the gap between buying and renting has narrowed only slightly. One year ago, buying was 46 percent cheaper than renting. Today’s it’s still 44 percent cheaper to buy versus rent according to Forbes Magazine. In fact, homeownership is cheaper than renting in all of America’s 100 largest metros. That’s because falling mortgage rates have kept buying almost as affordable, relative to renting, as it was last year. According to Freddie Mac, between February 2012 and February 2013, the 30-year fixed rate dropped from 3.9 percent to 3.5 percent, though rates have been rising since. Most buyers look to keep their payment under $1,000 per month, which could potentially help them acquire a home well under $160,000, which is more than most renters think that they are able to qualify for with a lender,” said agent Torrence Ford.
Company owner Susan Fessler adds, “With mortgage rates remaining low, the opportunity for home ownership is finally within reach for many first-time buyers. For a real estate agent, there is nothing more rewarding than helping a client obtain their dream of owning a home, a goal that is now more accessible than it has been in years.”
The rewards of owning versus renting your home go beyond the financial benefits. Agent Christopher Russ shared, “I rented for 10 years after getting out of college before I owned my first home. But, the feeling of pride I received after I signed those papers was liberating beyond words. I felt a sense of inclusion and that I had gained a voice in the community. Also, by owning a piece of property, the monthly payments you make give you more equity, whereas renting just gives you temporary space. So, if your situations allows you to purchase, then go do it.”
Among our team, the answer was definitively BUY NOW. As long as your financial situation is stable and you have a good credit score, pre-qualifying for a mortgage that will be the same or less than monthly rent should be no problem.
To check out rent versus own comparisons for your neighborhood, be sure to check out sites such as Trulia and Zillow.
If you’re ready to make the transition from renter to homeowner, give Morris and Raper Real Estate Consultants a call at 404-228-2691. Also, be sure to Like us on Facebook for more industry news and helpful tips for your home.