Affordability for prospective first-time home buyers has increased in recent months, mainly due to favorable home prices and current low mortgage rates. Additionally, the $8,000 first-time home buyer tax credit enacted earlier this year as part of the stimulus bill has made the costs of owning a home comparable to renting a similar property.
The California Association of Realtors offers a great new resource. They have
analyzed the difference between renting and buying a home using current housing costs and tax implications in computing the analysis.
Based on C.A.R.’s calculations and assumptions, the monthly PITI (principal, interest, tax and insurance) for a first-time buyer purchasing an entry-level home would be $1,630. The monthly expense of renting a 3-bedroom, 2-bathroom apartment would be $1,875.
If you would like to see the full report, including graphs and charts, let me know, and I'll email it to you.
No comments:
Post a Comment