Buying A home May Now Be Cheaper Than Renting That Apartment

In an ironic turn of events, many people are finding they cannot afford to pay rent and are turning to buying a new home.

Falling house prices and increasing rental demand have made it cheaper to buy a property than to rent. Individuals are quick to assume a rental would be much more peaceful on the pockets, but it turns out most rentals are priced, on average, approximately 25 percent higher than a monthly mortgage.

With home prices way down, low interest rates and sky high demand in the private rental sector, buying has never been a better option for those able to secure a mortgage. And with home owners reducing prices even further, in preparation for a quick sale during the holiday season, this has become one of the best times in history to purchase a home.

The statistics in every state show that the average rent is more than a monthly mortgage payment. When you add on the incentives to owning a home, it’s a strong argument to contact a real estate agent quickly.

Take a look at average rental prices in a few states;

Alabama $ 724

Arizona $ 815

California $ 1455

Colorado $ 1032

Florida $ 982

Georgia $ 819

Illinois $ 1098

Maryland $ 1283

Nevada $ 811

New Jersey $ 1468

New York $ 1672

Pennsylvania $ 1009

South Carolina $ 753

Tennessee $ 794

Texas $ 946

Virginia $ 1149

Average rates, based on 2 bedroom

Renters have failed to realize what an opportunity they have right now. There is an abundance of homes to choose from; and a larger selection of available homes versus rental units. Imagine shaving off $300 from your monthly rental payment? What about purchasing a new home, with all your required amenities, in the vicinity that’s central to everything, all at a lower monthly cost?

But the million-dollar question is whether prospective homeowners can get a loan.

After the mortgage meltdown, banks tightened credit standards including increasing down payments which shut out many potential homebuyers; however, there are many programs available to help get those homebuyers into a new home.

Many factors have created great deals in the housing market, but those same factors also might be too daunting for many individuals to overcome right now.

Everyone should know where they stand. At a minimum, meet with a mortgage broker and real estate agent to ascertain what home loan programs you may qualify for. This could very well be the best time in U.S. history to purchase property.