Study Shows Buying Better Than Renting
Posted August 30th, 2012 | by The Update
LVRJ: Renting or purchasing a home: Which is the better deal today? In most areas, buying is more cost-effective, according to the results of a recent study conducted by real estate listing site Zillow.
While the upfront costs of buying may be steeper, the break-even point (when ownership costs, such as taxes, fees and earnest money, match the costs of renting) is three years or less in more than 75 percent of the 200 metro areas and 7,500 cities analyzed by Zillow.
Zillow’s survey compared rental costs to all major homeownership costs, including down payments, closing fees, mortgage payments, utilities, maintenance costs and property taxes. The data also factored in estimated home price appreciation and rent increases along with inflation and tax deductions.
“Across most of the country, historic levels of affordability make buying a home a better decision than ever, especially considering rents have risen more than 5 percent over the past year,” says Stan Humphries, Zillow’s chief economist.
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Whether you buy or rent, or are looking to sell, visit Briggs Freeman Sotheby’s International Realty, DFW’s premier real estate broker, at briggsfreeman.com.