35% Cheaper to Buy Than Rent Your Home

35% Cheaper to Buy Than Rent Your Home.

  During the Summer of 2013, Trulia, an online real estate site, reported the results of its study of whether it is cheaper to buy or rent your home.

  This study included 101 of the largest real estate markets in America and compared the cost of buying versus renting for June 1st to August 31, 2013.  

In San Diego, it would be 20% cheaper to Buy a Home than to Rent.
For a savings of over $300 per month.  - Source: Trulia

To Buy or Rent - That is the Question.

  With the uptick this Summer in interest rates and home prices, buyers have cooled down heading into Fall to re-evaluate whether their plan to buy a home, instead of continuing to pay rent, is still a good idea.  

  In short, the answer is yes.  

  Buying is still cheaper than renting; not to mention buying a home is a great way to grow wealth in the long term and potentially save on your income taxes.  The result is financial security and financial freedom.

  According to Trulia's Buy vs. Rent Study, on average, it is 35% cheaper to buy a home than to rent.  This figure is down from 45% last year.

8 out of 10 People own their home or plan to buy.

Even with the Recent Uptick in Interest Rates 

and the Increase in Home Prices?

  Yes, the author of the results reported, “Recent mortgage rate and home price increases have made buying significantly more expensive than last year, but not enough to tip the math in favor of renting.  This is because rates remain well below historical norms, and prices are still slightly undervalued, too.”

What Questions Do I Ask?

  Trulia has a pretty nifty interactive tool to help calculate whether buying is cheaper than renting for your particular situation.  You must consider the following factors:

• What is your target monthly rent?
• What is your target home price if buying?
• How long would you live in your home?
• What is your income tax rate?
• What is your mortgage interest rate?

San Diego:  The Results for Buying versus Renting.

  So, I tried Trulia's calculator for renting versus buying in San Diego because recently a property, which I manage, was available for rent.  

  I had well over 50 emails, texts, and phone calls from prospective renters willing to pay $1,600 per month for this 2 bedroom, 2 bath condo, which would sell for about $300,000!  

  For those who appeared to be perfect candidates for buying, instead of helping the landlord pay off his mortgage and his investment property, I would ask them, 

"Why don't you buy a home?"

  Using this example, in San Diego, if you were considering paying $1,600 monthly rent or buying a $300,000 home, it would be 20% cheaper to buy than to commit to that lease, according to Trulia's calculator.  You would save approximately $300 per month buying your home over renting!  See the graphic above.

Don't Rent from me - Let's Go Buy a Home!

5 Top Reasons People Buy their Home rather than Rent.

  Some would-be buyers asked, "What if I don't know if I will live in the home for 5 or 7 years?" 

  You could hold it as a rental property or sell it and take the profit as your down payment on your next home.  

  The tenants would pay off your investment, rather than you paying off your landlord's property.  

Contact me to See Whether You Qualify to Buy

And How Much You Could be Saving

  Call, text or email me to get pre-qualified for a loan and see if 

now is a good time for you to buy a home.

  

For the details and how this is calculated, click the link and try The Interactive Calculator yourself.  

Click the link to read Trulia's article on renting vs buying:
News Room - Trulia.com - Press Releases

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Mark Harbaugh, J.D. has been a licensed REALTOR® in California since 1998.  He is a real estate Broker, holds a Bachelors Degree and a Law Degree.

Since 1998, Mark has been providing expert representation to buyers and sellers of homes, condos, multi-unit properties and multi-million dollar estates. 


His clients include friends - old and new - colleagues, professional football and basketball players, original founders of Fortune 500 companies and other high-profile personalities, who value their privacy and anonymity.  Mark has also consulted Nationally and Internationally with many interested in buying and selling real estate.

Mark can be reached at 619-246-2860.

Email: markonthemark@gmail.com

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