Many people have been reluctantly sitting on the sidelines over the last few years wondering and waiting about whether to buy a home. It makes sense to feel nervous about purchasing a home while property values have been declining. Everyone's situation is different but here are some important factors to consider on the buy side of the equation:
- Rates are at historic lows for fixed rate mortgages and ARM's.
- Property values have come down between 35% and 40% from their highs.
- Rental rates are rising as the demand has gone up and the supply has been limited.
To calculate what you would gain financially by buying versus renting go to:
http://www.nytimes.com/interactive/business/buy-rent-calculator.html
Another interesting article about Buying vs. Renting is here in a Bloomberg news article:
http://www.bloomberg.com/news/2012-03-14/mortgages-bring-record-savings-over
