Buying is still cheaper than Renting. even with the recent increase in the prices and rates, it's cheaper to buy than to rent in all 100 of the largest real estate markets, according to an analysis by trulia.com. Nationally it's 37% cheaper to buy than to rent, assuming the buy stays in the home for at least seven years. In fact, rates would have to more than double to over 10% for markets to tilt on favor of renting in 78 of the largest 100 real estate markets.
Prices will continue to Rise. The Home Price Expectation Survey polls a distinguished panel of over 100 economists, investment strategists, and housing market analysts. Their most recent report released projections which caused them to be to be optimistic about the housing marking and home sales in major real estate markets.
Landlords have a tendency to increase rent every year. They do this in order to accommodate for inflation. This won't happen to you if you own your payments for the life of your loan by owning a property. By owning you will never pay more unless you want to. Save a lot on the next year's taxes. As a homeowner, you'll be able to deduct everything from real estate taxes, to private mortgage insurance, to loan points paid on a purchase.
Owning your home feels a lot more permanent than renting. Your children won't have to worry about changing schools, making new friends, or having to start anew in a strange city every few years. If you have kids, buying a home is one of the best decisions you can make for their mental well-being.
You should consider your mortgage like a "forced savings" program. Yes, you're writing your mortgage company a check each month, but that money, save the interest you're paying, is still yours in the form of equity. In essence, the difference between renting and owning a home is that homeownership lets you build up your own monetary value, instead of your landlords.
Making mortgage payments on time will boost your credit score. It will show that you are capable of taking on big financial responsibilities. And your credit score impacts so much more than your mortgage rate: It can affect the interest rate you get on car loans, credit cards, and any other kind of loan that you'll conceivably take out in your lifetime. Good credit can be a powerful tool.
You can't help but get a sense of accomplishment when you're handed the keys to your very first home. Your house is the physical manifestation of your years of hard work and financial responsibility. And nothing says "success story" like owning your very own piece of the American Dream.