Home Buying Much Cheaper Than Renting

March 21, 2012

in News

Home Buying Much Cheaper Than Renting

It’s the eternal question in real estate: Should I buy or rent? The answer has never been clearer: Buy. In 98 of the top 100 housing markets, buying a home is more affordable than renting, according to the online real estate company Trulia. There are several reasons. Home prices are falling. Mortgage interest rates are at historically low levels. And rents are on the rise. The Trulia survey does not take into account home price trends, which are another factor for individuals choosing whether to buy or rent. “People will pay more for a home if they expect prices to rise and give them a better return on their investment,” said Jed Kolko, Trulia’s chief economist. Those calculations are about to change, according to Ken H. Johnson, a professor of real estate at Florida International who has studied the buy-vs-rent question extensively. He believes home prices nationally have bottomed. “The ship has turned,” he said. “Markets should slowly start to recover. Housing will return to its traditional role of a safety investment.” If so, that adds an incentive to buy. [Read this article]

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