For those stating their own families or starting to build their own dreams, having a definite place they can call their own always comes to mind. They could be driven to earn more to make a this a success but before they can even start, they are caught by the question ‘is it cheaper to rent or to buy a house?’ Financial experts say it is much cheaper to pay for your own house than rent all your life.
Prices of houses for sale are increasing every year but recent studies show that mortgage rates are falling and so payments are getting quite affordable to many. There are steps which can be observed to ensure that buying a house is a cheaper and a wiser choice to make than renting one. First, you can calculate the average rent and for sale costs for similar houses. Next, the initial total monthly costs of owning and renting must be calculated. These include maintenance, insurance, and taxes. In connection to that, future total monthly costs of owning and renting must be calculated next. In here, the account price and rent appreciation must be considered. Other computations must include closing costs, downpayments, sales proceeds, and security deposits. Then, compare the figures that you will have for both.