Make the switch from renting to homeownership
Posted on Friday, March 23, 2012 at 4:54:10 PM
Consumers seeking a new home may want to forgo looking through rental listings and instead focus on ownership. According to the most recent Trulia study, 98 out of 100 U.S. housing markets are more affordable to buy in than rent.
In addition, the are only two markets where it makes financial sense to rent over buying are San Francisco and Honolulu. The areas where buying is drastically cheaper are cities such as Detroit, Toledo, Cleveland, Ohio, according to CNN.com. Consumers in these markets can find plentiful residential financing options if they can prove to lenders they have a significant down payment, good credit history and a suitable income.
"The ship has turned," Ken H. Johnson, a professor of real estate at Florida International told CNN.com. "Markets should slowly start to recover. Housing will return to its traditional role of a safety investment."
An individual could gain an advantage in the current buyers market before the housing market returns to its’ former strength. Purchasing a home with home financing in a strong community can allow a homebuyer see a return in the investment in a few years.