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Canada Business News and Press Releases
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(I-Canada-News.Com, April 02, 2013 ) Toronto, Canada -- In a new study handled by Trulia, buying a home is now 44% cheaper than renting overall, despite the rising cost of homes.
Trulia Rent vs Buy report surveyed the 100 largest metro areas within the United States. With the survey numbers it concluded that homeownership is cheaper than renting in each city.
The 44% figure, which compares with 46% that was tallied in 2012, assumes that buyers stay in the home for seven years, itemized deductions at 25% tax bracket, and has a 3.5% interest rate on a 30-year fixed-rate mortgage, with 20% down.
A low mortgage rate has kept the cost of buying lowered, even with overall prices up 7% year-over-year.
Chief economists of Trulia, Jed Kolko, stated that the largest discount is Detroit, where buying is now 70% cheaper than renting, while the smallest savings is in San Francisco, where buying is 19% cheaper than renting.
Kolko stated that buying is not likely to look as good in 2014 as the prices are rising faster than rents and mortgage rates are likely to rise as well.
For those who stay in a rented space for less than seven years, or do not itemize or attain the lowest mortgage rate, renting can be a better deal. With a 5.5% mortgage, for instance, buying is 2% more expensive than renting in San Francisco.
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Source: EmailWire.Com 
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