According to a new real estate study, the old trope holds true: buying a home is often more affordable than renting one.
Conducted by the real estate information online resource, Zillow, the study examined 200 metropolitan areas and 7,500 cities to determine how long it would take before a homeowner would begin to see the financial payoff that comes with purchasing a home. In about three of every four metro areas tracked, the break-even point was ushered in in as little as three years – or less.
Factors considered in reaching this conclusion were housing and renting costs – including down payments, property taxes, closing costs, maintenance fees, tax deductions, rental payments, and mortgage expenses.
Of course, there are always exceptions, and it’s no doubt that some pricier real estate markets – like San Jose, California – have a significantly longer timeframe when it comes to reaping the financial benefits of homeownership. While about 7% of the 200 metropolitan areas followed took over five years to reach the break-even mark – all of which, again, were in California – many areas took only 1.6 years. These real estate hot spots include Memphis, Tennesse; Salisbury, Maryland; Red Bluff, California; Fernley, Nevada; and Tampa, Florida.
The chief economist at Zillow, Stan Humphries, insists that the unprecedented affordability of housing throughout most of the country ensures that buying a home is an increasingly wise decision. Contributing further to the incentive to hop on the home buying bandwagon is the reality that rents have risen more than 5% over the past year, according to Humphries.
If you’re prepared to take advantage of the nearly nationwide real estate deals, the Associates at Colony Title are here to help you further make the most of your money, with our one-time cost insurance and affordable title search services. Just like buying rather than renting, making the investment in title insurance now will save you money in the long run by protecting you against unsettled claims on your property’s title.
If you have questions, the Maryland real estate insurance experts at Colony Title Associates can be reached by calling 410 884-1160 or visit ColonyTitle.com today!
About Colony Title Associates:
Founded in 1995, Colony Title Group handles in excess of 2000 real estate closings per year in the central Maryland area. The founder Tee Tillman has over 23 years experience in the title and real estate law fields. Colony handles closings for several lenders, including banks, credit unions and mortgage brokers. Colony is the preferred choice for many real estate brokers in the area.
Tags: buyer's market, buying versus renting a home, closing costs, Colony Title Group, down payments, maintenance fees, property taxes, real estate news, rental payments, Stan Humphries, tax deductions, Title Insurance, Zillow