Buying a Home in Novi is Cheaper than Renting

If you are considering buying a home in Novi, it is currently cheaper than renting. The price of buying a home has fallen and demand is up in the rental market. The web real estate site, Trulia reported that it was less expensive to buy in 74% of the 50 largest cities in the U.S. than it was to rent a home. The fall of home prices as well as the low interest rates currently has a big impact on buying rather than renting.

Buying a home in Novi includes many pluses. The tax benefits as well as the cost have created a buyer’s market. Although this is a decision that must be made on an individual basis, if the buyer has at least a 20% down payment, a steady job and enough money for expenses for several months, this could be a good decision.

The Detroit area is one that is considered better for buying a home than renting. The average price of a townhouse or a condo is approximately seven times the amount paid annually for rent. Buying a home in Novi may cost an average of $80,000. When consumers consider that the amount being paid in rent would buy a home in only seven years, purchasing a home looks pretty good.

There are some areas where renting is cheaper. For example, Ft. Worth, Texas homes cost an average of 32 times the amount paid per year to rent. The reasoning for this is the condos that exist in the area are few and the ones that are available are more costly. The rents are fairly low and these two considerations make renting cheaper than buying in this city.

Ft. Worth is included in the 12% of cities, including San Francisco, Seattle and New York, where renting is less expensive. In approximately 14% of the 50 largest cities considered the cost was cheaper for renters, but it was near the cost of buying.

Buying a home in Novi versus renting should be considered using several factors besides the cost. The amount of time you plan to live in the home, the availability of cash for closing as well as a down payment and the expenses of home ownership are a few.

If you would like more information about Michigan homes, please feel free to contact us at (734)-722-7244 or visit our Contact Us page where you can send us a message.  We’ll get back to you right away!