Is it Better to Rent or Buy?
Hello Hampton Roads,
Is it better to rent or buy? The answer is, it depends.
While I believe the benefits of home ownership generally outweigh the benefits of renting, the fact is everyone must make the best decision for themselves and see which option serves them best.
Ask yourself, how do you want to live and what's important to you about your lifestyle. To help you visualize your options, the table below shows the advantages and considerations with renting and buying:
The one thing the table does not address is the financial aspect, is it more affordable to rent or buy?
Zillow's affordability research shows that as of 2nd quarter 2018 that the share of median income needed to afford a median US home is 17.5% while the share of income needed to afford a median rental is 28.4%. So overall, renting requires a larger percentage of income showing it to be less affordable option.
As every real estate market is different, I think the best comparison is to show the mortgage cost and rental cost the same house our area. Consider this example, 1223 Corkwood Circle, Chesapeake VA 23320 was listed this year for both sale and rent. The current list price is $165,000.00 and the rental price is $1,250.00/mo. When we compare the numbers for the mortgage vs the rent, here is what we see using this mortgage calculator : $1041.35/mo mortgage* vs $1250/mo rent.
*The mortgage payment is based on a $165,000 sales price with 3% down (Fannie Mae Conventional no MI) at a 5% interest rate and $600/year in insurance and the taxes are taken from the tax records.
If you believe that buying a home is the right choice for you and you'd like to learn more, feel free to schedule a complimentary home buyer phone call!
Thanks for Reading,
_________________________
Serving your Hampton Roads and Virginia Beach Real Estate needs. Liz Schuyler on Google+
Is it better to rent or buy? The answer is, it depends.
While I believe the benefits of home ownership generally outweigh the benefits of renting, the fact is everyone must make the best decision for themselves and see which option serves them best.
Ask yourself, how do you want to live and what's important to you about your lifestyle. To help you visualize your options, the table below shows the advantages and considerations with renting and buying:
Zillow's affordability research shows that as of 2nd quarter 2018 that the share of median income needed to afford a median US home is 17.5% while the share of income needed to afford a median rental is 28.4%. So overall, renting requires a larger percentage of income showing it to be less affordable option.
As every real estate market is different, I think the best comparison is to show the mortgage cost and rental cost the same house our area. Consider this example, 1223 Corkwood Circle, Chesapeake VA 23320 was listed this year for both sale and rent. The current list price is $165,000.00 and the rental price is $1,250.00/mo. When we compare the numbers for the mortgage vs the rent, here is what we see using this mortgage calculator : $1041.35/mo mortgage* vs $1250/mo rent.
If you believe that buying a home is the right choice for you and you'd like to learn more, feel free to schedule a complimentary home buyer phone call!
Thanks for Reading,
_________________________
Serving your Hampton Roads and Virginia Beach Real Estate needs. Liz Schuyler on Google+
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