Rent vs Buying, What You Should Consider
Most people considering rent vs buy assume that it’s cheaper to rent a home or condo than to buy one. But this is not necessarily true. In fact right now it can be cheaper to buy than to rent in many cities.
According to a recent article published by Forbes.com, 98 of the 100 largest metropolitan areas in the US offer better rental options. So if you are considering whether it’s better to rent or buy, if you live in one of these areas, buying is a no-brainer.
Why Rent When You Can Own a Home or Condo?
Probably the most sensible answer to this question is simply because right now it’s cheaper to opt for rent vs buy. But why?
Property prices have been falling nationally, while rental prices have been increasing. In fact some say that this is the very lowest rent vs buy ratio we have seen for decades. Since that magical housing bubble burst around 2007, the price of residential houses has dropped as much as half! On the other hand, rents have continued to rise. So if you think about it, in monetary terms, rent vs buy = high vs less.
According to the Forbes article, in New York and LA, both of which boast notoriously high house prices, rent prices are typically lower. In Honolulu and San Fransisco it is much more affordable to rent vs buy. But Detroit is said to give the best value for buyers versus those wanting to rent.
Wherever “economic growth is relatively strong the supply of housing units is limited thanks to building regulations, people are willing to bid up prices and spend more believing their investments will be matched by rents eventually”.
So, why rent when you can own?
Come and explore the option of Buying a Condo or Home vs Renting a Condo or home in Downtown Raleigh or surrounding areas.