For some time now people have asked whether or not it was actually better to buy a home for sale vs rent a home. Well, turns out even with all things considered, it is in fact cheaper to buy a home than it is to rent a home in today’s market. It is actually 44% less expensive to buy than rent in over 100 of the largest metro areas!
Recently a study was done that researched and compared buying vs renting. The good folks at Trulia reported their findings to conclude, buying was better. They did the research with exact same homes, neighborhoods, and other physical features identical. Then they used the following three assumptions as a base for the research:
1) 3.5% mortgage rate on a 30-year fixed-rate mortgage and put a 20% down payment
2) Home buyers would be in the 25% tax bracket and itemize their federal tax deductions
3) Home buyers would stay in their homes for at least seven years.
With this as the baseline for the research, they concluded that on average, it was 44% cheaper to buy a home. Don’t worry, they also factored in things such as closing cost, inflation, home owner maintenance, mortgage insurance, and taxes to this equation and buying still won over renting nationwide.
Buying a home for sale in Arkansas is actually 49-62% cheaper than renting one and this expected to get even better for the home buyers by 1% during this year (2013). The only place in the United States that buying is NOT the better option over renting is in the areas where the housing market is extremely expensive. Trulia found that it was more expensive to buy a home in San Francisco, Los Angeles, Boston and New York than it was to rent. Trulia also put out a handy little map to let you play around with the 3 above mentioned guidelines for their base of the research. To see how this might affect the amount of saving, by say staying in your home only 3 years vs 7, see it here.
Why is it that it is such a great time to buy a home? Low mortgage interest rates are making it so. The great news is, they are historically low right now. It has never been a better time to buy a home in Northwest Arkansas or anywhere pretty much in the entire United States, as it is right now. Especially with these hard cold facts staring you in the face.
Now is the time to make your move Arkansas! As always, if I can assist you in your home search or if there is any questions you have, please don’t hesitate to contact me and I will get right with you.
Have a great weekend Arkansas!
Phone: (479) 298-3224