Renting vs. Owning
To rent or own? The numbers tell the story.
The tax savings enjoyed by homeowners versus renters increase every year. And that's especially true now when homes are more affordable than ever. Really.
According to the National Association of Realtors' housing affordability index, in December 2008, homes were more affordable than at any other point since the group started the index in 1970. The affordability index is a measure of the relationship between home prices, mortgage interest rates and family income.
MarketWatch recently spoke with Eddie Fadel, author of the book Don't Rent, Buy! Fadel said that waiting for further federal developments could erode a buyer's negotiating power, because as more people return to the market, competition heats up and prices rise. "The more Washington gives, demand will increase." he said.
So although recent financial news has made people afraid to move forward on real estate purchases, buyers who act now will benefit from leverage that will decrease as buyers increase.
Run your numbers and see for yourself.
Try your own numbers and find out how much you can save by renting versus owning.
