Cost of Buying a Home vs Renting
Rent your next home or buy it, which is less expensive?
There are many different financial factors that should be considered:
- Monthly expense (rent or mortgage)
- Initial costs (deposits or down payment & closing costs)
- Maintenance expenses
- Mortgage rates
- Property Taxes
- Income Tax advantages or lack there of
But the decision between buying and renting is more than just a financial decision. What is the price of your freedom?
If you want to paint your porch purple, get a dog that is larger than 30 pounds, or be able to make decisions about your home, you need to own it. Otherwise, you are always at your landlord's mercy. If you know that you will be moving again shortly, that may play into your decision. If you purchased the home with a Professional Realtor who was looking after your best interest (aka a Buyer's Agent), you should not have anxiety about reselling it. Your agent would have made sure that:
- you bought at the right price
- you purchased a desirable home
- you financed it using a program advantageous to you
The current housing market has opened an incredible door of opportunity for people to buy rather than renting. With interest rates low, and rents high, the numbers speak for themselves.
- HOME PRICE - $100,000 - renting is better if the rent is less than $443 per month
- HOME PRICE - $250,000 - renting is better if the rent is less than $964 per month
- HOME PRICE - $400,000 - renting is better if the rent is less than $1472 per month
PROSPERITY HOME Mortgage, LLC has a great Renting compared to Buying Calculator.
Take some time, plug some numbers in and be prepared to be amazed!
There are $0 down payment programs,which allow you to have the seller pay your closing costs. You could buy a home for less up front money than a rental in many cases. If you need to repair your credit, we will help you with a plan of action, preparing you to buy soon.In Charleston SC's current real estate market has made a "perfect storm" for renters to become buyers.