The Raleigh-Cary metro has a 2.5 year breakeven on the Rent vs Buy decision!

by Ashley Wilson

Rent Versus Buy – How do You decide?

When do you try and make a decision to rent versus buy a home?  The real estate market is in a constant flux – this decision will vary for everyone based on location in the US, proximity to local amenities, price bracket of homes you are searching for – the list of variables goes on and on. One thing to consider is the market where you are moving a buyer or seller’s market? If your plan is to “move up” (to a bigger or more expensive home) or simply want to move to your dream home and can afford it now that prices are low, then don’t waste any time!!

The real estate market hit rock bottom and, in many locations around the country including the Triangle area of Raleigh, Durham and Chapel Hill, the local market is already experiencing a rebound. Just this week Zillow.com presented an analysis that indicates that the cost to buy versus rent pays off after only three years. So, in other words, if you choose to rent the same home versus spend the money to buy the home, you would break even in just 3 years on average. The average for the Raleigh-Cary area was less than that, coming in with an average of 2.5 years.

Some things to consider when making this decision for yourself, especially in a slowly appreciating market:

  • How mobile are you?
  • Financial situation – how stable are you month to month?
  • Marital status – would the future she/he agree with your choices?
  • Career goals take you elsewhere soon?
  • Personality – are you spontaneous or pretty predictable?

If you are honest with yourself about these questions, the more likely you will be about your decision to rent versus buy. There is a lot of comfort in knowing that you own the property you come home to daily. The changes you make to the property are all about you and those investments add value (as long as you are smart about your decisions).  All in all, Zillow’s analysis found that in over 200 metro areas, the decision to buy is a better financial decision than renting. The returns on the cost to move vary based on location. To read more details about your metro area click here or for local info use the graph below.