Home prices have taken such a beating and demand for rental units has increased so much that it’s now cheaper to buy than to rent in most major U.S. cities.
According to real estate web site Trulia, buying was cheaper than renting in 88% of the country’s 50 largest cities in July. In just 12% of the cities renting was cheaper. In addition to a decline in home prices, rock-bottom interest rates have added a lot of weight to the buy side of the scale. With the addition of all the factors as well as the tax perks of home ownership, it certainly is a buyer’s market.
In most cases if you plan on staying a while, and have some cash for a down payment, you’re better off buying in most places.
It is important to consult a Realtor to go over your specific information…
the factors that will be evaluated are:
- How long you plan to stay: If you’re not keeping the home for several years, transactional costs of buying and selling can wipe out any buying edge.
- Do you have cash for closing: Some fees can be paid by the selling end of the transaction, but you need to have enough money to pay your down payment and some purchasing fees. Your Realtor and Lender will help determine how much money you will need to purchase a home.
- Can you cover all the homeownership costs: It’s not just the mortgage: Don’t forget about property taxes, insurance, heat, utilities and regular maintenance.
- Can you claim the tax advantage of homeownership: Mortgage interest is deductible and can shave a lot off tax bills. It is important to check with your tax advisor to determine how much benefit you may gain.
You may not know if you are ready to purchase a home…..Is your credit score high enough? Do you make enough money to qualify? Do you have enough money for a down payment? etc… FREE advice on what you can do to purchase a home is available at your local Real Estate Office. Kari Cross – Intero Real Estate Services 925-584-1640 kcross@interodb.com
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