Renters, Buying May Be A Better Option!
According to a new report by RentCafe, an online rental marketplace, rental prices are up 7% and the spaces are 8% smaller! With developers paying more in construction costs and the demand in large cities being higher, they are forced to fit more units in a smaller space.
New studio apartments may be the smallest in size, having been downsized nearly 18% since 2006. The average size is now 504 sq. ft. One-bedroom apartments have shrunk by 5%, from 794 sq. ft. 10 years ago to 752 sq. ft. today. Two-bedroom apartments, however, have mostly held steady over the past 10 years, actually increasing 1% to 1,126 sq. ft.
This may be a better time to buy, unless a renter has certain circumstances that make it less feasible. Those reasons could be, lack of credit or money down or even uncertainty about staying in a particular city. Otherwise, buying a home is a better investment!
Rates are still at an all time low, so many times a renter can own a home for less. Of course there are factors that need to be taken into account.
1. Is there a condo/homeowner's assoc. fee that will affect your monthly payment?
2. What are the taxes/insurance in the area?
3. What is your timeline for staying in that home?
4. Could you possibly rent it out for income if need be?
It's almost always a better option to buy a home, you get a return on your investment, and write off your mortgage interest. With rent, you get nothing in return!