Buying a home makes more sense than renting

Buying homes is starting to make more financial sense than renting.A recent CNNMoney article explained that, given the current real estate market and renting trends, buying a home makes more sense for consumers than renting one.Two researchers recently conducted a study, Real Estate Economics, that stated two factors are currently in play with the market. First, rental prices are expected to increase, possibly climbing by as much as 7 percent during the next two years. Second, home prices have continued to drop, falling by as much 32 percent from their peak during 2006.As a result, the article relays, home price gains only need to average 3.25 percent annually in order for homebuying to make more financial sense than renting. Furthermore, the article states that, in order to make the math work, consumers would need to stay in a home for only a minimum of eight years.Renting has typically made more sense in the past, as the cost of owning, in addition to all other bills and taxes, can accumulate quickly. However, this discrepancy can now offset by gains in home values after purchase. With fewer consumers interested in homebuying, prices remain low, yet, when the market returns, values should increase again.For Houston properties, a recent US Money News report estimated the average current rent is $822, which will increase by 4.4 percent during 2011. For those intrigued by homeownership, now might be the best time to make the jump.?Courtesy of 2M Realty News

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