However, these days, when it comes to deciding whether to rent or buy, the renter has an advantage.
There are many factors involved in the equation.
How long prospective buyers are likely to live in the home, how much money they have available for a down payment, how much interest they will pay on the mortgage, and whether the home’s value is likely to appreciate Consider.
Potential renters will take into account current rental rates, whether rents are likely to increase, and the cost of rental insurance.
In a typical housing market, buying a home may make sense for someone who expects to live in the home for, say, five years. That’s enough time to pay off your mortgage, increase your home’s equity, and increase its market value. The theory goes that you’re more likely to make a profit if you sell your home after five or 10 years.
That formula may still work. However, with home prices so high, many potential buyers cannot afford to make the investment.
