Even with their unique financial and living situations, it is still better for Millennials to buy a home rather than rent in most cities.
Usually, when Trulia crunches its home-buying numbers, it assumes a 30-year, fixed-rate mortgage with a 20% down payment for households moving every seven years.
Following these guidelines, buying is 36% cheaper than renting on a national basis, based on September home prices. Buying is also cheaper than renting in each of the nation’s 100 largest metros.
But the problem with this model is that it doesn't fit the situations that average Millennials face. Instead, Trulia said that it is typical for young households (ages 25-34) to move every five years and only be able afford up to a 10% down payment.
This latest edition of Rent vs. Buy considers these Millennial factors. Trulia also assumed a 3.85% mortgage rate on a 30-year fixed-rate loan, itemized federal tax deductions and a 25% tax bracket
Click to enlarge
According to the results, “Buying is not only 23% cheaper than renting nationally, it is also cheaper than renting in 98 of the nation’s top 100 markets,” Trulia said.
While this calculation shows that buying is still cheaper than renting, the difference is pretty close in some places, especially in California.
The report noted that there are additional economic conditions that influence today’s market.
For example, home-price growth has outpaced rent growth since 2012, which favors the rent side of the buy vs. rent equation. But low interest rates help offset this issue.
This chart shows the markets where renting beats homebuying for Millennials.
Click to enlarge
Author:Deborah Boyd Phone: 940-368-1306 Dated: October 29th 2015 Views: 603 About Deborah: My family has lived in North Texas for generations so I personally know the residential areas of Fri...
JP And Associates REALTORS (JPAR) is one of the top 100 independently owned brokerages in the US. A full service real estate brokerage firm specializing in real estate sales and marketing services with multiple offices across the US and expanding quickly. JPAR is also one of Real Trends top 500 Brokerages in the US for volume and sales and in the top 1% in the US for sales.
Our mission is to provide extraordinary services and exceed our clients’ expectations by always committing to the highest levels of professionalism, ethics and standards in the real estate industry.
JP and Associates REALTORS is a real estate company with a solid structure and foundation built around service and productivity. We believe in providing a fun and rewarding environment for all our REALTORS® and therefore always ready to support our REALTORs® Associates in any market and in any condition. All our REALTORs® will always strive to close more transactions in a given year than the average REALTOR®. Our goal is to recruit and retain the most professional, better trained REALTORs Associates in the local market.
If you are interested in a new career in real estate or already have a real estate license but wish to learn more about our company please contact us directly to set up an interview. We offer our agents a 100% commission plan, company leads, training and mentoring and coaching from TOP Producers with no office, desk fees or monthly marketing fees ever. We are a full service brokerage at a transaction fee cost.
At JP And Associates REALTORS we strive to exceed our Clients AND our Associates expectations.
General Inquiries: firstname.lastname@example.org
Office Number: 1 (800) 683-5651
Texas Real Estate Commission Consumer Protection Notice
Don’t Let Your Luck Run Out [INFOGRAPHIC]Some Highlights: The “
"I am writing to share what a wonderful experience I had working with the realtors Leanna and Jayson David. On several occasions they helped me. They sold my mother's house and several years later they sold my home. Then helped with the purchase of my new home.
They are very kind and caring realtors that go out of their way to help in whatever needs to be done to accommodate their clients. I would highly recommend them, they are the best.