Buy vs Rent!

Buying can sometimes be cheaper than selling! Contact us at 781 724 9637… Massachusetts Real Estate: To Rent or to Buy, That is the Question Real Estate Guide By Eleanor Boschert… Rent. Buy. Supply. Demand. Inventory down. Vacancy rates up. Oh, and prices. Is it better to rent or to buy now in the Boston metro area? To help you with your decision, MassRealty offers insight into the pros and cons of buying or renting a home in this rebounding real estate market. First, the facts. Rents are skyrocketing, with the average monthly rent in Boston up over 6% year-over-year in 2012. Nationally, Boston ranked the fifth most expensive rental market in the nation, according to the real estate industry data provider, Reis, Inc. Vacancy rates are low, with the perpetual influx of students and many re-locating professionals, the demand for rental housing — from simple to luxury — consistently remains high. Yet, in a real estate market emerging out of a downturn, prices crept upward to the tune of 3.6 % in 2012. Inventory is low, with sellers just beginning to awaken a seller’s marketplace. Estimates claim there is up to 20 % less housing inventory on the market this year than the same point last year. So, just what do you do? Do what feels right to you. But, before you make a decision, crunch the numbers. Figure out your basic rent-to-buy ratio, to see if it is financially wise to buy now. More than likely you will find that the numbers speak for themselves. Buy. Statistics point to the data that currently is it smarter to buy, rather than rent in 98 of the 100 major markets. reports the median asking price for a home in Boston as of February 2013 is $329,900 while the median monthly rent for Boston hovers around $2,400. If you figure buying a home with a 30-year fixed mortgage at a 3.250% interest rate, your monthly payment would be $1,435. Still factoring in your down payment amount, home insurance, and taxes, buying trumps renting. While the financial benefits say “buy,” you should carefully weigh both sides of the whole equation. There are personal, professional, and logistical factors that could also influence your decision. To start, there are three main factors:… Income and job stability Ability to come up with a down payment How long you plan to stay in a home While you’re at it, consider both the pros and cons. But, in the end, the benefits of home ownership outweigh those of renting. PROS: Interest rates are at an all-time low Prices, albeit climbing, still are relatively affordable You are buying an investment for your future There are tax benefits associated with mortgage interest deductions CONS: Coming up with a down payment Tougher mortgage lending standards Costs and responsibilities associated with home ownership Uncertainty about employment or job transfer

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