should you rent or own - find the best strategy for your house

RENTShould you

Find the best strategy for your house

or OWN

THEGREATDEBATE

It’s an age-old debate that never really goes away. What’s the best way to save money on your home:

RENT BUY

THE qUESTION cOmES DOWN TO SEcURITY.

Fixed payments on standard mortgages for the next 15 or 30 years can be reassuring when rents may rise with inflation.

REcENT EcONOmIc cONDITIONS ONlY cOmplIcATE THE ISSUE.

BUT

(in 2010)17%VAcANcY RATES REcENTlY FEll

This is due to foreclosures that forced many into the rental market, causing rents to go up as demand increased.

THE cASE FOR BUYING

The first argument against renting is the amount of money you’ll spend with no return. If you pay $1,000 a month, you’ll pay $360,000 over 30 years with no return.

For many, that alone is a deciding factor in the rent versus buy dilemma.

1

Another thing you may want to consider: In many cities former homeowners have entered the rental market in large numbers, causing rent to increase.

2

Finally, fluctuating home values have made homeownership more affordable in most major cities.3

THE cASE FOR RENTING

8YEARS

Today, the average timepeople spend in a home is

If you want the flexibility to easily relocate or you don’t expect to stay in a home beyond the short term, renting certainly has its appeal.

1

Buying will require your home to steadily appreciate to cover your costs: down payment, taxes, closing costs, mortgage interest, repairs and other expenses.

2

Finally, check the ratio of a home’s price to that of annual rent. The tipping point starts about 15-20 times annual rent.

3

For example, in a neighborhood where the average rent is $12,000 a year and a comparable house costs $180,000, buying a house for much more than that may not add up.

$12,0

00

$180

,000

EVERYONE’S SITUATION IS DIFFERENT. BE SURE TO TAkE THE lOcAl EcONOmY INTO cONSIDERATION BEFORE mAkING YOUR FINAl DEcISION.

look online at specific neighborhoods to compare the monthly cost of renting against equivalent for sale listings.

In an undervalued housing market, the appeal of buying can be compelling.

For those considering buying, the questions are oFten simpler than any rent or buy calculation. you have to Figure out what is best For your Family, right now.

to learn more about renting versus buying, visit REGIONS.cOm/mYGREENGUIDE

this information is general in nature and is provided for educational purposes only. regions makes no representations as to the accuracy, completeness, timeliness, suitability, or validity of any information presented. information provided should not be relied on or interpreted as accounting, financial planning, investment, legal, or tax advice. regions encourages you to consult a professional for advice applicable to your specific situation.