Homes condos Montgomery Md Rockville Gaithersburg Germantown, Short sale foreclosure expert: Home Buying vs. Renting...the Gap is Closing, Definitely Time to Buy

Home Buying vs. Renting...the Gap is Closing, Definitely Time to Buy


Home Buying Could Soon Beat Renting


Home Buying Could Soon Beat Renting

By John W. Schoen, Senior Producer

Falling home prices have sent many would-be buyers to the sidelines. If all goes well, record low interest rates and rising rents may soon prompt some of them to take a second look at buying.

Unfortunately, that's a big "if," according to Paul Diggle, a housing economist at Capital Economics.


Much of the decision to buy a house still depends on your personal finances and preferences, your career or family life, or level of financial security.

But if you’re comparing just the cost of owning and renting, buying a house may soon be the better choice, according to Diggle.

Until recently, home ownership was no bargain compared to renting, according to his analysis.  A 33 percent drop fall in home prices, a plunge in mortgage rates and 15 percent rise in rents since the housing crash has evened the scales. Today, the median monthly mortgage payment of about $700 has fallen to about the level of a median monthly rent check.

If mortgage rates keep falling and rents keep rising, the equation will tip even further toward owning.  Read More>


Uploaded by ReginaldWimbley on Jan 10, 2010


Almost everybody has a dream home. A place they like to wander through in their thoughts, choosing imaginary wallpaper and putting in imaginary skylights. But for too many people, dream homes remain just that dreams. The reality of owning there own home and the financial benefits that accompany home ownership never seem to become theirs. They continue wasting hundreds of dollars each month on rent building someone else's wealth and living by someone else's rules. 


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Comment balloon 2 commentsRick Reed • January 25 2012 05:11PM


Agreed. I decided to rent a condo this summer, and had a friend who took out a mortgage and bought a home around the same time. Their house payments were less than HALF of what I was paying for rent alone...and now I always feel like I'm just throwing money away. Buying is definitely the better option!

Posted by Lang Premier Properties, Metro Detroit Real Estate Group (Lang Premier Properties) over 8 years ago

Rick - all indications are that it's time to buy.  Rents are going through the roof and why not pay for your own roof to have over your head.  Buyers just need to be realistic with what they can afford - it may be a small home but it sure is great to know they can make it their own!  Be your own landlord. 

Posted by Jane & Garry Smith, ABR, GRI, Realtors - Portland, ME - (207) 253-3195 (Coldwell Banker Residential Brokerage) over 8 years ago