Housing Market News March 24, 2016

Why Buying Beats Renting Today

Buy Rent header hires

Buying a home in the Puget Sound area beats renting in less than two years, according to anew study. The “breakeven horizon” – the number of years after which buying is more financially advantageous than renting – is 1.9 years.

Why the short timeframe?

Interest rates are at historic lows. (But experts expect them to rise soon.)

Interest rates

Rents are at record highs.

Zillow Rent Index

If you paid the average cost of monthly rent towards a mortgage payment instead, here’s what you could buy:
Based on principal & interest on a 30 year mortgage at 4% interest with 0% down.

Monthly mortgage: $2,666
Home value: $558,400

Seattle   Monthly mortgage: $2,401 Home value: $502,900

Snohomish County 
Monthly mortgage: $1,884
Home value: $294,600

Are you ready to invest the money you spend on rent to buy a home?

Get in touch with Oscar and Nancy so we can help you take advantage of the “breakeven horizon” and turn your monthly rent into a mortgage payment!