-Alexa Realty 411 on Friday August 15th 2014
-Hosts Robert Gawel & Petra Byers
-Script for today's show
Robbie: Are you looking for a home? Is it better to rent or buy? You’ve got questions we’ve got answers… next on AlexaRealty411.
Robbie: Hello and welcome to AlexaRealty 411, I’m Robert Gawel…
Petra: and I’m Petra Byers…Despite rising home prices and climbing mortgage rates, it's still cheaper to buy a home than rent one in major cities across the country, according to the real estate web site Trulia, which analyzed data in 100 metro areas.
Robbie: Home prices are just one factor to consider. Deciding whether to buy or rent also depends on the location and how long you plan to stay there. Nationwide, homebuyers who remain in their homes for seven years will save an average of 38% over renting, Trulia found.
Petra: Let’s take a look at 4 top metro cities and let you decide!
Robbie: To rent or to buy! That is the question!
Petra: While Manhattan's multimillion-dollar penthouses and expensive suburbs may make all the headlines, many single-family homes in the area command much more reasonable prices. The Median rent in Manhattan is $2,850, while the median cost for a home is $520,000. If you buy in Manhattan for and live there for 7 years, it’s 22% cheaper than renting.
Robbie: Even though Los Angeles' homes prices have risen some 20% in the past year, it's still cheaper to buy than rent there. Like New York, a lot of that has to do with low mortgage rates. According to Trulia, interest rates would have to climb to 7% or more for renting to be a better deal than buying a home. The Median rent in Los Angeles is $2,100, while the median cost for a home is $420,000. If you buy in Los Angeles for and live there for 7 years, it’s 24% cheaper than renting.
Petra: The Windy City is undoubtedly a buyer's a market. Home prices in Chicago went through a slump during the second half of 2013 that left median home prices at $170,000 in January, about $10,000 below the national median. The median rent in Chicago is $1,700 and if you buy in Chicago and live there for 7 years, it’s 47% cheaper than renting.
Robbie: Big Oil and other energy industry players have kept Dallas' economy humming. Even through the worst of the housing crisis, home prices in Dallas fell by just 11% -- a fraction of the losses seen in most other major cities. And Dallas has more than recovered since. The Median home price in Dallas is $190,000 and the Median rent there is $1,650. If you buy in Dallas for and live there for 7 years, it’s 41% cheaper than renting.
Petra: So, I think we have our answer? It’s better to buy!
Robbie: So now all you need is a good buyer’s agent…I wonder where you could find one.
Petra: If you’re looking to buy, sell or just have real estate questions call us were here to help.
To reach us all you have to do is pick up the phone and give us a call our numbers are right here below.
Robbie: If you’re watching this on Facebook hit the LIKE button and to stay in the know in the world of real estate subscribe to our blog at alexarealty411.com and until next time thanks for watching I’m Robert Gawel
Petra: and I’m Petra Byers.
Robbie: Well see you next week…bye for now