Is it cheaper to rent a home than to have a mortgage in today's Richmond market with the historically low interest rates?
The answer is an emphatic NO!
“
Historically low interest rates are making
mortgages cheaper than renting.
”mortgages cheaper than renting.
Historically low interest rates are making mortgages cheaper than renting. According to Trulia, paying a mortgage is a staggering 34.8% cheaper than paying rent for those who put 20% down on their purchase. I saw that figure and thought it was unbelievable. For retirees, buying is cheaper than renting in all major metros by almost 42%. That's also an astonishing figure.
If you take a look at the graph in the video above, you can see mortgage affordability vs. rent affordability in today's market. Today, 30% of your household income is going to rent if you're renting a home. With today's low interest rates though, only 15% of your household income is needed to carry a mortgage. It just makes sense to buy as opposed to renting. Gallup also recently conducted a poll across various demographics that found that America's choice for the best long-term investment is real estate, besting gold, savings, and the stock market, among others.
If you have any questions about real estate, don't hesitate to reach out to me! Just give me a call of send me an email, and I'd be happy to help.
