Is Buying Cheaper Than Renting?
There’s an old axiom that says buying is smarter than renting. While that may not be true everywhere, a new survey finds that at least in Philly, buying does offer amazing savings.
Ask a recent first-time homebuyer and they’ll likely say their parents told them that while renting is okay at first, buying is a much better option because it serves as a very real investment in the future.
According to Philly.com, a recent survey shows that Mom and Dad were right.
This finding was established by Trulia, a popular real estate website. It holds that even over a period of just seven years, buying a home in Philly at the current median price of $175,000 would be 48% cheaper than renting a home at the current median price of $1600 per month.
This may sound obvious, but the very same survey finds that in places like New York or Los Angeles the opposite is true. Philadelphia’s large supply of reasonably-priced homes helps us avoid the affordability issues facing these other major cities.
In addition, this conclusion holds particularly true in certain neighborhoods in Philadelphia’s urban core, where steep property value increases in communities like Graduate Hospital or Passyunk Square push house hunters to buy as soon as they can.
It’s important to remember that a house needs to be both a place to live as well as an investment. Renting can be a smart decision for a while, but buying gives you the ability to create a home that perfectly suits your needs and tastes while also serving as a strong investment.
Ultimately, knowing the facts and figures that guide the real market are an important first step in buying a home the right way.