It is thought by many that renting a home is a lot better than buying a home. People think that it is feasible to rent then to buy. They think that they will be saving money. However, a recent report has shown that buying a home may be cheaper than renting.
Kelly and John Foley moved to South Florida from Michigan. They started out by renting a two-bedroom house in Oakland Park for $1,650 a month. Later on, in March, they paid $190,000 for a three-bedroom house with a pool in Delray Beach. The new house is bigger than the place they were renting and they had a cheaper mortgage of which they paid only $1,430 a month.
Kelly Foley is so happy with her decision of buying a new home. She is paying less money for it monthly and she is excited to know that she owns it. “Oh, definitely, we really got a lot more bang for our buck,” Kelly Foley said.
According to a first-quarter report from Zillow.com, a home and real estate database with information and tools to help consumers make smart decisions about homes and mortgages, buying a home is a better option for many people who live in South Florida. This new report showed that in Palm Beach County alone, buying a home is more economical then renting one after an average of 1.3 years. Zillow.com continued to state that in Broward County, after renting a home for just about 1.1 years, buying a home would be cheaper. Here are some other “break-even” points the report displayed:
- Lake Worth, FL – 6 months
- Greenacres, FL – 7 months
- Tamarac, FL – 7 months
- Lake Park, FL – 9 months
- Coconut Creek, FL – 9 months
- Orlando, FL – 1 year
These numbers are shocking because when compared to other states and cities outside of Florida, the homeowners have to stay put for longer. Homeowners in Washington, D.C. have to wait 4.2 years before they can buy a home. Homeowners in Boston, MA have to wait 4 years and in Phoenix, AZ, they have to wait 3.3 years.
The monthly rents for apartments and single-family homes in Florida have risen with the recent years. The reason for the increase is mostly due to the former homeowners of the apartments and homes. They have not yet qualified for another mortgage, so they are keeping the monthly rent high.
If you or someone you know would like to refinance your home, you can call the loan experts at Ace Mortgage Loan Corporation in Coral Springs. Maybe you are just seeking financial advice to help you determine if buying a home is what is best for you. You can count on Ace Mortgage Loan Corporation to help guide you in the right decision for you and your family. We can help you finance your home or obtain a mortgage loan through FHA, Fannie Mae, or Freddie Mac. Call today; free consultation is available 7 days a week.