It’s the age old question: is renting or buying a house better? While general consensus has usually been that renting is better than buying, recent data proves otherwise.
In a series of recent studies, data has shown that it is actually cheaper to buy a home in majority of the United States than it is to rent, especially in some areas surrounding major cities. For example, ATTOM Data Solutions’ research proves that it is better to buy a home rather than rent in Philadelphia, Chicago, and Las Vegas. So, what does all of this mean?
What This Means
Basically, this data indicates that renting rates are expected to continue to increase in recent years to come. Although mortgage interest rates are also expected to increase within the next few years, they are still extremely low. So low in fact, that the current rates are among historic low rates.
When you think about it, why would you rent a home if you could afford to purchase it? After all, owning a home is a fantastic investment that could pay off in the long run.
What You Should Do
Whether you’re in the market to rent or buy, you should consult with your professional. Although it might be appealing to purchase a home in one of the popular areas with lower mortgage interest rates, you should consider other factors other than your financial budget. For example, are you confident that you can be responsible enough to maintain and fix your property? Also, do you see yourself living in that house and area for more than a few years? If you are unsure about those questions, then that is an indicator you might not be ready to purchase a home.
Overall, purchasing a home is an enormous personal decision that should take a lot of thought. But if you disregard any other elements of purchasing a home, today’s current mortgage interest rates prove that it’s the perfect time to purchase a home!