If you are unsure whether buying a home for sale / condo for sale is the right decision; or, if instead you should continue renting, newly released figures may help you make up your mind . A new analysis indicates that rental amounts have become far more expensive than ever before.
When budgeting for expenses, renters can now expect their rental payment to cost them 30.2 percent of their monthly income. Economists have long advised that spending 30 percent of your monthly income on housing is an acceptable amount. Even with just a slight bump in the percentage, historically however, rental prices have been much cheaper.
Looking back over the years, renters were paying approximately on average 24 percent of their income in 1979. When looking at the comparison of renting a home versus buying a home today, a recent study showed the average buyer can expect to spend about 15.1 percent of their monthly income on their mortgage payment. This figure is considerably less than the historical average of 21.3 percent.
In other words, not only is buying a property considerably cheaper than renting in most real estate markets, it is also now far more affordable than it has been in years past. So, if you are still on the fence, now is a great time to consider buying, and it will remain a good time to do so as long as rental amounts continue to surge. More about this story here.