Sunday, June 13, 2010
Balancing the Scales on Renting Vs Buying
If recent activity is any indication, there are significantly more prospective renters out there than buyers in today's housing market. While there are many reasons folks may have little choice in the matter, there may never be a better time than the present to invest in your own home.
If you crunch the numbers on the mortgage calculator to the right, you will find that you can now get a 3 bedroom entry level home in many Essex Co. suburbs for a monthly payment as low as $1,000 per month. Most 2 BR rentals, on the other hand, start at $1100. Of course property taxes can add $400 to $700/mo to that figure -- you'll get a good chunk back from the IRS from that beloved Homeowner's Deduction.
Combine this with the landlord restrictions on such factors as pets, private driveways, and larger families and renter choices can be very limited. The bottom line is that interest rates have never been lower and have nowhere to go but up.