Ownership costs are dropping below rental costs!
The recent downturn in the housing market resulted in a drop in rental rates, but rents are back on the rise while the cost of home ownership has dropped. As average apartment rental rates have slightly decreased, the decline has been moderate in comparison to home values, which have declined nationwide by 30 to 40 percent since the peak of the housing boom. For more reasons why now is prime time to buy a home, contact me and I’ll send you a free eBook.
Did you know that the monthly cost of owning your own home will be equal to or less than the cost of renting an apartment or home?
Think of it this way; If you rent a home, it is typically owned by someone that has a mortgage on that home. That person is in the business of making money. Essentially, you are paying at least the cost of his mortgage or more. You will never see that money again!
But if you purchase a home, you will have your own mortgage to pay. The difference is that if you decide to sell your home for what is owed or more, then you would have lived in your home for FREE throughout the duration of your stay. If you decide not to sell your home, then you will have entered the ranks of the investment property owners and will continue to make money off of your investment.
Many Americans are content to rent after witnessing the crumbling housing market in recent years. But with rent on the rise and home prices continuing to fall, a reversal is in sight.
Some real estate professionals anticipate home prices to fall further, with some economists expecting a 15% to 30% drop this year. This might be bad news for household finances and current homeowners fearing that their most prized asset stands to lose more in value. On the flip side, this makes homes more affordable and might finally spur more home sales, especially at a time when the rate of home construction has been the lowest since before the Second World War.
- No matter what happens with home values, you will not gain equity
- Limited or no ability to personalize
- No tax advantages to renting. Landlord gets all the applicable tax breaks
- You are paying your Landlords mortgage
- More fixed Costs for term of lease
- When lease is up, you can just move
- Less work in maintaining for apartment or condo living
- Small amount of Upfront case