Is It Cheaper to BUY Real Estate or RENT Real Estate ????

Currently it is 35% Cheaper to BUY than to RENT in the U.S., according to Trulia's Chief Economist, Jed Kelko.

This statistic is based on:

1) the Buyer staying in the house for at least 7 years so closing costs are spread over these years.
2) a national average of 4.8% mortgage interest rate.
3) the Buyer itemizes his/her tax deduction and deducts mortgage interest.

Last year it was 45% cheaper to Buy than to Rent in the US because the average mortgage interest rate was lower at 3.75%.

For Rents to be cheaper than Buying Real Estate, the mortgage interest rates would need to reach 10.5%.

Even though prices and mortgage interest rates are expected to rise again next year, it will still take a long time before we reach an average 10.5% interest rate in the U.S.

So, if Buying is a possibility and you plan to stay in one area for at least 7 years, the best economic decision would be to BUY Real Estate.

Want specific pricing information? Contact our Buyer Specialist, Mike Drefs, at 623-693-1505.