Currently, it is a buyer's market when it comes to the real estate industry. The housing market has experienced a recent decline of 33 percent leaving millions of new and existing homes available for purchase. Huffington Post reports that mortgage interest rates are at their lowest point ever. According to the source "Mortgage company Freddie Mac said Thursday that the average rate for 30-year fixed loans sank to 4.69 percent, from 4.75 percent last week." That mortgage interest rate is the lowest on record since the loan giant started documenting mortgage interest rates in 1971. Some perks of home ownership include:
- Mortgage interest tax deductions
- A sense of security
- Allows freedom of expression as far as decorating and renovations
- The ability to build equity and increase chances of acquiring personal wealth
Some Perks of Renting a Home
Just because there is cheap money to be borrowed and plenty of housing price discounts does not mean buying is the absolute best decision. Renters certainly have it a bit easier than their homeowner counterparts. If something goes wrong in your rental unit, renters simply need to call their landlord or property management agent to get it resolved. Other perks of renting a home include:
- Minimum commitment as there are month-to-month leases and longer term options available
- Less responsibility as landlords are legally responsible for making repairs and necessary improvements to their properties
- Renters can generally move into their new homes more quickly as the home buying process can be time consuming
- Allows for trial runs of new cities and places to live
How to Decide between Renting and Buying a Home
Money talks, and for many, that is what the ultimate decision making factor of the renting versus buying debate. However, just crunching numbers on a rent versus buy mortgage calculator is not enough. There are other thoughts to ponder including:
- Time: Owning a home can be expensive from the get go but this move will allow consumers to build equity. Before that can happen, homeowners should expect to live in their several years before the initial investment (including closing costs and mortgage points) is paid off. If you can make a long-term commitment, then buying may be right for you.
- Location: Trulia.com (a real estate listing portal) recently did the math using the buy/ rent ratio. Their conclusion is that those living in Fresno, California, Las Vegas, Nevada, Phoenix and Mesa in Arizona, Minneapolis Minnesota, Arlington and San Antonio in Texas and Jacksonville and Miami in Florida are better off buying.
- Money: Only those with the best credit scores and substantial monetary reserves should even think about become a homeowner. Repairs, taxes, insurance, renovations and decorating are all part of the homeowner's package.
