Purchasing a home beats renting in many U.S. metros in only three years
Posted on Thursday, September 13, 2012 at 8:16:24 PM
In the current housing market, renting is often more expensive than buying. According to real estate market research firm Zillow, leasing a property for at least three years could surpass the cost of owning the same property for that same frame.
Zillow analyzed more than 200 metros and 7,500 cities in the United States to determine how many years it would take before owning a property is more financially advantageous than renting. The experts factored in all costs associated with buying and renting such as down payments, mortgage payments, rent checks, transaction costs, taxes, utilities and maintenance expenses.
"A person should consider purchasing a home because as stated in the article the cost of homeownership is less than renting in many markets. Moreover, it is a well known and accepted fact that individuals who own a home rather than rent attain appreciably higher personal net worth," said Patrick Deady, a residential financing expert from Home Loan Investment Bank.
With rents on the rise and mortgage interest rates on the decline, an individual may want to determine what housing option is the most fiscally intelligent for the long term.