Owning May Be Cheaper than Renting
RealtyTrac recently released its first quarterly Residential Rental Property Analysis for 2015 and found that in most of the country, owning is cheaper than renting.
More than 450 counties across the country were a part of the analysis, and in 76 percent of those counties, renting was less expensive by a significant degree. Fair market rents, according to Housing and Urban Development (HUD) are 28 percent of an area’s estimated median household income. In RealtyTrac’s study, the cost to own a median-priced house, was 24 percent of household income. This amount includes a 10 percent down payment, taxes, home insurance, and mortgage insurance.
Although buying may be more affordable in most of the country, it is still not easy for everyone. Bigger banks, in response to the housing crisis and recession, have yet to ease their requirements, and saving for a 10 percent down payment can be difficult.
However, a new wave of buyers may be entering the market. By the end of this year, over 600,000 people will no longer have evidence of a foreclosure on their credit reports. Foreclosures that were processed between October 2007 and 2008 are beginning to roll off reports and credit scores are beginning to strengthen. These buyers may still find it difficult to find financing, but it is not impossible.
If you’re in the market to buy a home this year, you’ll want to work with a professional. Find your
Realtor at www.PanamaCityRealtors.com