I am sure that most of us have cool widgets for our website that let someone calculate mortgage payments, amortizations, and maybe even home values, but, soon we may be able to install a
Rent Versus Buy calculator.
Trulia, home to some of the coolest tools on the web, recently released their sophisticated calculator that takes into account dozens of assumptions to truly determine which is right for your pocket book – Renting or Buying. The Trulia calculator takes into account the overall cost of renting versus buying including such fields as monthly rent, rental insurance, security deposits, purchase price of a home, down payment, annual tax bracket, net present value, annual renovations planned, how long you stay in a home, local market stats, and more.
It is estimated that across America, it is, on average, 35% cheaper to buy a home than it is to rent a home. Cities like Detroit MI, Cleaveland OH, Kansas City KS, Dayton OH, and West Palm Beach FL, topped the list of cheapest places to buy versus rent showing an average savings of over 50%. At the bottom of the list, San Jose, San Francisco, San Diego, Orange County, Los Angeles, Ventura County, Oakland, Sacramento, New York, and Hawaii – all with under 20% savings to be had by buying, 4% in San Jose.
While choosing when to buy a home involves more than just number calculations, the Trulia studies and rent versus buy calculator could be a very helpful tool! Hopefully soon this tool will be a widget we can have on our websites and share with the masses!