According to a new Bankrate.com study, buying a home is more expensive than renting in all major U.S. cities.
The study shows the typical monthly mortgage of a median-priced home in the U.S. is $2,703, while the typical monthly rent is $1,979.
In Metro-Orlando, the average mortgage payment is $2,705 while monthly rent is $2,028.
Chris Hardiman, area manager with Guaranteed Rate, said while the stats can be worrisome, people shouldn’t give up on their dreams of becoming homeowners.
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“There needs to be a paradigm shift in the way Americans are looking at it because most Americans, the number one asset they have after retirement is the equity in their home,” Hardiman said.
According to Bankrate, nearly 4 in 5 Americans say owning a home is a part of the American dream.
“When you’re paying rent, you’re stroking a check, and that’s it; it’s gone,” Hardiman said. “Homeownership is different you now own an asset and you own an appreciating asset that’s gaining value.”
He said waiting too long can hurt you in the future.
“You’re also losing the opportunity cost of the appreciation of the real estate market when you’re sitting on the sidelines as a renter,” Hardiman said.
Bankrate shared this list that shows when buying a home the bad outweighs the good:
Financial pros and cons of buying a home
Pros
Builds equity over time (savings)
Helps build credit
Fixed monthly mortgage payments (if you have a fixed-rate mortgage)
Tax incentives
Freedom to remodel
Cons
High upfront costs (down payment and closing costs)
Property value can fall
Limited choices in competitive housing markets
Maintenance costs
Equity takes years to build
Must pay annual property taxes and homeowners insurance
Potential HOA fees
High mortgage rates
Housing experts recommend speaking with a loan officer or mortgage broker to identify strategies to help you reach your goals and checking for down-payment assistance programs you may be eligible for.
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