Cheaper to buy than to rent in 72% of largest U.S. cities
Despite the rising number of renters across the country, it is cheaper to buy a home rather than rent one in 72 percent of the 50 largest cities in the U.S., according to an index released by real estate search and marketing site Trulia.
Trulia's rent vs. buy index compares the median list price with the median rent on two-bedroom apartments, condominiums and townhomes listed on Trulia.com as of Jan. 10, 2011.
In 36 out of 50 of the country's most populous cities, buying a two-bedroom home is less expensive than renting one. These cities include many areas that have been hit hard by foreclosures, such as Phoenix...
"Although owning a home is relatively more affordable in most cities, market conditions have caused an interesting demographic swap between traditional renters and buyers," said Tara-Nicholle Nelson, consumer educator for Trulia, in a statement. Nelson is also an Inman news columnist.
"For example, lifelong renters are seizing the opportunity to become homeowners while affordability is high. At the same time, a growing number of longtime homeowners are finding themselves tenants -- some by choice and others by necessity."
Click here to read the full article on inman.com
INMAN NEWS, January 24, 2011
Rent versus Own: 2011 Outlook
Many Americans are content to rent after witnessing the crumbling housing market in recent years. But with rents on the rise and home prices continuing to fall, a reversal is in sight.
It wasn't hard for many homeowners to bid adieu to 2010. It was the year where, in many metropolitan areas across the country, rents surged as home prices fell, leading a growing chorus of skeptics to question the so-called American Dream of homeownership. Perhaps not surprisingly, it makes more financial sense to rent than buy today in many U.S. cities.
But that may finally be about to change. Moody's chief economist Mark Zandi expects the trend to reverse this year in many major cities. This would be a positive development, as a healthy housing market typically puts renting and owning at more equal footing.
Click Here to read the full article on CNNMoney.com
January 4, 2011
$8000 Military HomeBuyer Tax Credit Expires April 30, 2011
Military & Certain Federal Employees Get Home Buyer Tax Credits Until 2011
A little-known provision of the Home Buyer Tax Credit bill that became effective on Nov 6, 2009, is that certain military personnel and Foreign Service employees have an EXTRA year to purchase a home and qualify for the tax credit.
In addition to that, if they sold a principal residence between Jan 1, 2009 & April 30, 2010 because they had to relocate at least 50 miles due to “orders”, they qualify for a tax credit, even if they owned a home between the above time periods. Income, age and sales price limitations still apply.
Who qualifies?
- Member of “uniformed” services
- Member of Foreign Service of the US
- Employee of Intelligence Community
- Spouse of any of the above
And must have had:
- Extended Duty outside the US for 91 days, or
- Extended Duty inside the US for 91 days and had to relocate at least 50 miles from principal residence
- Sold principal residence between Jan 1 2009 & April 30, 2010
Tax Credit Dates Extended to:
- Signed contract by April 30, 2011
- Closed by June 30, 2011
Can get tax credit if:
- They sold their home or the home stops being their principal residence as of January 1, 2009 (because of government orders)
- Extended duty (either inside or outside the US) and had to move at least 50 miles away from principal residence
- Extended duty is defined as 91 days service (either inside or outside) the US.
