According to Real estate website Zillow, renters could benefit from buying there home after a three year wait on a nationwide average.
Zillow and some other Real estate sites have started posting for sale and for rent information on their sites, Zillow calls this the ?break-even horizon?, which compares what it costs to buy versus rent the same home in a good majority of ?US markets over time. The rent or buy?figures ?fluctuate ?depending on where you live.
4.3 years is the combined number from Los Angeles and Orange Counties, assuming the buyer has made a 20% down payment. Newport Beach is another story considering most residents wait 14 years before buying to make better financial sense.
The analysis takes into account a good amount of factors potential buyers should acknowledge before going through with a sale, ?including the down payment, mortgage and rental payments, buying and selling costs, property taxes, utilities, maintenance costs and tax deductions. The analysis conforms for inflation and forecasts home value and rental price appreciation.
Zillow?s senior economist Svenja Gudell says the data helps?homeowners get a good estimated idea ?of whether buying makes sense in a particular area?in relation to their financial situation.
This new debate on buying ? versus ? renting has come at a delicate time for the housing market. Analysts believe the housing bottom has been reached but don?t expect a return to the exhilarating days of the Real estate boom. Some are concerned about the recovery, with home sales slowing in June and inventory remained tight, with buyers paying higher prices.
On the contrary, rents are rising, housing affordability is at record levels, and mortgage interest rates remain low. These are all great deciding factors for many renters considering homeownership.
Information provided by LA Times read more about this topic:
http://articles.latimes.com/2012/aug/02/business/la-fi-rent-or-own-20120802
Have a wonderful week from Remax Preferred Professionals!
Source: http://inside-real-estate.com/davidcooley/2012/08/14/for-renters-buying-a-home-pays-off/
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