Why it is cheaper to buy than to rent a home
If you are still on the fence when it comes to renting or buying a Lakeland Fl Home, a new report from Trulia states buying a home is actually going to save you more money than renting. You may think this is not possible with the rising home prices, but the numbers will tell you why. Average home prices may have risen 2.3% in August, but rent prices have risen 4.7%, which is double the cost of buying a home! This only goes to show that buying a home is 45% cheaper than renting. It could save you around $771 a month to buy a home than to rent.
Trulia further reports that based on its calculations, it is 55% cheaper to buy than rent in Orlando, 57% in Tampa, and, getthis, 61% cheaper to buy a Lakeland Fl home!
Trulia based its calculations on the assumption that a homebuyer can get a mortgage rate of 3.5%, is part of the 25% tax bracket, itemize their federal tax deductions, and will keep their home for 7 years, which is the average time an American family usually lives in a house before moving.
These are also other factors considered by Trulia in coming up with the report on why it is cheaper to buy than rent a home:
1. They calculated the average prices of homes for sale and rentals for June-August 2012.
2.They estimated the total cost of renting versus buying in the metro area over a period of 7 years, considering costs such as taxes, insurance, and maintenance.
3. They looked at different cases of buying versus renting by changing the income tax bracket for tax deductions, mortgage rate, and time horizon.
Homes in Lakeland FL have been very affordable for those who can get a mortgage loan at very low interest rates. Overall existing home prices in Lakeland average around $120,000.
Now that you know that buying is much cheaper than renting, it is of course the perfect time to buy a Lakeland Fl home now!