Trying to decide whether t
o rent or to buy? Trulia recently released their 2011 3rd Quarter numbers that calculates the price-to-rent ratios for the 50 largest U.S. cities using the median list price to buy compared with the median rent on two-bedroom apartments, condos and townhomes. In the July 2011 numbers Dallas was ranked 13 with a ratio of 12. Trulia categorizes cities between a 1-15 ratio to be much less expensive to buy than to rent. Overall according to the study, buying was cheaper than renting in 74 percent of the country’s 50 largest cities.
Oddly, Fort Worth ranks number 49 at an ratio of 32 which indicates that renting in this city is much less expensive than owning a home. To see more large cities and where they rank check out Trulia’s interactive map.
Our team has had several lease prospects turn into happy buyers over the past few months once we showed them the numbers. In today’s buyers market with softer real estate prices combined with rock-bottom interest rates a buyer in Dallas and Collin County can easily purchase a home with a lower monthly mortgage payment (including taxes and insurance) than compared to a rental rates in the current competitive rental market that continues to drive rental rates higher. Add that fact to some of the benefits of homeownership like building equity, more choices in location and stability for you and your family then it may make sense to start looking for a home to buy instead of renewing your lease.
Of course there are a few more things to consider before deciding to make a purchase:
- Do you have cash for the closing? (visit with a mortgage consultant to see how much you will need – ask us for recommendations on who to call)
- How long do you plan to stay?
- Can you afford the added expenses of home ownership? (HOA dues, maintenance, etc…)
The ultimate decision depends on each person’s situation and their plans for their future, but if you need more information to make your decision contact The Marr Team, your real estate consultants, we would be happy to help. And even if leasing is a better option for you – we can help there too.