2012 and Owning Homes – Is it Better to Buy or Rent?
If renting is better than buying or if buying is better than renting, depends on various factors. It depends on the price of the home, the price of rents, the place you are going to buy or rent, your financial situation, your credit, and the mortgage market. So, you can see that there are various factors that are supposed to affect your decision over renting or buying a home. In addition to considering the above mentioned factors, it is also important for you to use a mortgage calculator in order to decide if you are going to buy or rent a home. This is important because, you will have to find out the total cost of buying a home or renting one. Based on that, you may be able to apply for a mortgage; and also as per the needs.
Better to buy or rent
As per the state of the mortgage market and the real estate prices, it is much better to buy a house than rent under the current conditions. This is supposed to cost much less than in comparison to renting a home. As per the survey by Wall Street Journal, in the third quarter of last year, at least 28 metropolitan places of our nation had seen decline in the home values. This slide downwards is said to be even lower than that of the second quarter of 2011. On the other hand, the level of charges on rent has increased briskly all around the nation.
However, unfortunately enough, such a trend over low mortgage rates and lowered home prices have not been able to up the level of demand for homes. This shortage of demand has been attributed to the still low affordability of the people. According to Paul Dales, an economist at Capital Economics, “The initial building blocks for a recovery are in place, but the legacy of the recession is really preventing households from taking advantage.” So, the main obstacle that is preventing the recovery of the housing market, as a whole, is the affordability of the people. Some of the homeowners are also stuck because they are not able to sell their homes for the right price.
Another reason as to the lack of demand in the homes is – though the mortgage payments to be made are low, there are some other important things associated with home ownership, like those of the tax payments, the insurance payments, dues on the homeowner association and the maintenance which are to be managed.
But still, according to most of the real estate agents and the market watchers, it is better to own than to rent as of now. Some of the cities where owning a home has become really cheaper are Chicago, Detroit, Las Vegas, Miami, Minneapolis, Phoenix, Orlando, and St. Louis.