Ask Lila: Renting vs Purchasing

Over the months I have been sharing with you about all of the reasons you should buy a home now and not wait until the 30-year mortgage is gone.

Let’s address the common question among my clients who are on the fence between renting and buying:

Which is more affordable?

Consider this excerpt from an article published this month by the Florida Realtors Association:

Apartment bargains once dominated the housing market, but those bargains have slowly faded away. As vacancies decrease and rents rise, renters are finding fewer deals.

Analysts expect vacancies to decrease even more and rents to continue to rise through 2013 as the economy continues to improve.

In 2011, rental activity recorded its best start for the year since 1999, according to Reis Inc. Vacancy rates have fallen to mid-2008 levels and rents have increased for the past five quarters, now averaging $991 per month nationwide…

Analysts say that bargains across the country are getting fewer, and renters should expect to see an increase in rents over the next three years. Read full post >>

Now happens to be a great time to buy a home, not just because rental costs are on the rise, but because interest rate are at historical lows.

If you are renting now, you should at least consider purchasing a home as the rental inventory decreases and rents go up.  According to the Florida Realtors News,  Jacksonville and surrounding areas are areas where rental inventory is running low and rent prices are increasing. You may be pleasantly surprised to find a house payment  more attractive than what you are paying to rent now.

Calculate the cost:

Here’s a great tool created by the New York times that calculates the cost of renting versus buying a home.  Simply fill in the blanks with your rent, interest rates and the cost of the home you’re looking at and… Voila! The results are presented within moments in an easy-to-read line graph indicating at exactly which points it is “Better to Buy” and “Better to Rent”.

Questions or comments? Did the calculator tell you it’s better you buy? No problem! Contact me at (904) 753-3944 or send a secure message below. I look forward to hearing from you!

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