With Prices/Rates Rising, Is it Still Better to Buy than Rent in San Diego?

posted on April 11th, 2013 | filed under: Uncategorized

rentVSbuy

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An article by Samuel Scott Financial Group.

As the housing market makes it’s “comeback” , potential home owners are re-evaluating their financial abilities in the marketplace once again. According to real estate research site, Trulia, buying is still financially better than renting in the top 100 major metro areas.

With home prices seeing steady rise, 7% in the last year, the sellers market is still heating up while rentals only rose about 3.2%. The good news for buyers is with Trulia’s data, obtaining a still low mortgage rate to buy is an average 44% cheaper than renting, down only slightly from the 46% of 2012.

The Trulia averages are with an assumed mortgage rate of 3.5% in the 25% tax bracket and will stay in their home for 7 years. For accuracy, the properties compared were identical and the averages were made with with maintenance, insurance and taxes being factored in. Also taken into account were price, rent appreciation and inflation as well as closing costs, security deposits and other one time costs.

 

posted by Jeff DeChamplain

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Jeff DeChamplain