What To Do This Year, Rent Or Buy A Home?

Is now the right time for you to buy a new home, or should you keep renting? This is a question that many people are asking themselves as we bring in the New Year. The truth is that comparing the initial costs of renting and buying is a lot more complicated than you might think, and requires research and preparation. Here are a few things to remember when you are looking for your answer to your own rent vs. buy question.

Home prices have been rising nearly ten percent in the past year, while mortgage rates remain at near-historic lows. Answering the question of whether or not you should buy a new home or rent a new home largely depends on where you live or plan to live, and how long you wish to live there. In most major real estate markets, like in Central Ohio, it makes more sense for homebuyers to buy, rather than rent.

In a study conducted by Zillow in early 2013, the company crunched the numbers and compared what it would be like for most people to buy vs. rent throughout the year. They took into consideration the many factors and costs that come along with each option. Throughout the nation, it will take an estimated three years for a homebuyer to break even on their investment of a new home. Therefore, if you’re planning on staying in your new home for longer than three years, it could be a greater benefit for you in the long run.

Ultimately, the bottom line is that if you own a home, you are building equity for yourself and setting yourself up to be potentially profitable in the future. If you are coming right out of college, it can be more beneficial for you to buy a home than to buy a new car, if you had to choose between the two. Every person who is going through the home buying/home renting process is each in a different place financially; however, determining what is right specifically for you at this moment will be better in the long run. A great way to find out whether or not it is better for you to buy vs. rent at this time is to check out this calculator to determine and compare the cost of each option.