Are you planning to move in the next few months? Instead of looking for a new place to rent have you considered buying a home in Florida? For the first time in years, it has proven more economical to purchase a house instead of rent a home in the U.S. Trulia’s Rent vs. Buy report was conducted for the sixth time this year and, this is the first year that the study revealed home ownership is less expensive than renting. This proved true in 98 of 100 large metro areas surveyed across the country. Only San Jose and San Francisco, both in California, show that renting was cheaper. Those two metro areas have a median home price of more than $1 million.
What If We Look At The Numbers More Closely?
According to the recent study, home ownership is 2% cheaper than renting a place to live in Honolulu, Hawaii, and it is a remarkable 48.9% cheaper in Detroit, Michigan. On a national level, the average savings of home ownership over renting is 26.3%, which is a significant difference. When conducting the study, Trulia considered all costs, such as the one-time expenses, such as those involved with rental like security deposits. For home ownership, they included mortgage payments, insurance premiums, taxes, and maintenance expenses. As they were conducting the study, researchers assumed the family would spend an average of seven years in the home and that a 20% down payment was made when the 30-year mortgage was set up. So, instead of renting another Florida home, you could benefit from buying a home.
How Do Mortgage Rates and Supply and Demand Come Into Play?
As you are considering home buying, you must consider the current mortgage rates. While mortgage rates have increased in recent months, reaching their highest levels in six years, and home prices are increasing because of the shortage of homes available for purchase, the gap has narrowed, and home ownership is less expensive. Home prices are expected to climb as the home shortage continues and as mortgage rates are expected to continue to climb. There is a significant increase in the number of building permits issued for residential construction, so the market will start seeing more newly constructed houses available within the next couple years. Residential construction started increasing in Florida last year, and those figures have stayed steady.
How To Choose the Right Home For You
As you go out on the home search, don’t try to buy more home than you can afford or a bigger house than you need. You need to work with a budget, so you don’t overspend, and you have a home that you are comfortable in the next several years. You should consider the neighborhood first, making sure you choose a home in a neighborhood that is close to your work and near good schools, if applicable. You want to make sure you choose a home that has enough room for your family, and you want to make sure it is properly checked for any potential issues. Work with a financial planner and a realtor, both of which will help you find a Florida home that meets your needs and fits your budget.
Other Benefits of Home Ownership
Home ownership allows you to invest your money in a home that will increase in value. When you are paying rent, you are getting a place to stay, but your money is not going anywhere to benefit you in the long run. Instead, the landlord will be benefitting from your rent payments. If you are looking for a new place to live, consider buying a home. It is much more affordable than you might have initially thought, and you can build up equity. In a few years, you can sell and upgrade your home, if that is part of your plan or meets your family’s needs for housing in Florida.