Could 2016 be the best year to buy a home since 2012? With median home prices rising month after month one would be forgiven for answering a resounding “No!” But real-estate research firm Trulia came to a different conclusion.
Trulia compared the costs to rent with the costs of buying a home and found that it is now 37.7% cheaper to buy a home rather than rent in the top 100 cities in America (the cheapest it’s been since 2012). Trulia’s analysis compared the monthly cost of owning—mortgage payments, maintenance, insurance, and taxes, to the cost of renting comparable properties.
The range is from more than 50% cheaper in Miami and Fort Lauderdale, Florida to under 20% in Honolulu and San Francisco. Although home prices have greatly appreciated in the last 4 years, in many cases rents have been rising just as – or more – quickly.
Obviously this isn’t the whole picture by any means, but the facts are the facts, at least as far as Trulia sees them.
So, what might be a reason to be a bit skeptical? How about having a down payment?
Even if you didn’t have to have a small fortune saved up, it’s still prudent to put as much down on the purchase as you can afford.
Another practical question to ask yourself is how does owning a house compare to renting, say an apartment or condo? There’s potentially a big difference is size if you’re moving to a house from a condo. Have you factored in the cost of furnishing your new home?
Here’s a suggestion: shop consignment stores, estate sales, and garage sales for gently used items that are in good shape, and especially that are clean – or at least very cleanable.
If you’re patient and know what you’re looking for, you should get what you need for a fraction of the cost of new. Upgrade to new later when it’s going to be more affordable to do so.
If you rent and you have a problem, you simply call the landlord. If it’s your place, you don’t even have to make a call. You’re IT!
Are you handy? Can you fix the simple things? I realize that You Tube can help in this vein, but there’s also the issue of having the right tools. Look into finding a tool renting library.
Hate the colors in the rooms? Paint, paint trays, brushes, rollers, tape, drop cloths are just some of the new items you get to own now. Are you messy? Big drop cloths!
For the big items, furnace, hot water heater, air conditioning unit, be prepared to call the professionals. Perhaps you should consider a home warranty insurance policy to cover some of this.
But be sure and read the details, especially what items fall into the “exclusions” category.
There’s more, but you get the idea.
And the idea of home ownership is still the American dream. Maybe a bit tarnished now, but still a noble goal.
And speaking of tarnish. How about some silver, brass, copper tarnish remover? More new stuff to buy! Yippee!!
Have fun!
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