If you’ve been considering making the jump from renter to homeowner, here’s some news that could help make up your mind. According to a newly released study by online real estate company Trulia, it’s 44 percent cheaper to buy a new home than to rent one. The study compares the total cost of owning versus renting in each of the country’s 100 largest metro markets.
Looking for a home in greater Phoenix or Tucson? The numbers in favor of owning are even more impressive. Data indicates it’s 46 percent cheaper to buy than rent in Phoenix, and 48 percent cheaper in Tucson.
Of course, there are always conditions that go along with such a bold statement. Trulia’s research assumes three main conditions: that you will stay in the home seven years; that you itemize federal tax deductions in the 25 percent bracket; and that your 30-year, fixed-rate mortgage rate is 3.5 percent or below, with a 20 percent down payment.
Although home prices rose 7 percent over last year and rental rates increased only 3.2 percent, buying remains more affordable than renting because of the current ultra-low interest rates.
When you’re ready to take the ownership plunge, come check us out, either online at www.maracayhomes.com or in person. Maracay Homes is opening 13 new home neighborhoods throughout Arizona this year. We’d love to show you why owning a home makes good sense (as well as good cents)!