In past decades renting a home through rental property management in Jacksonville or elsewhere was looked at as a way to cut living costs. It was considered an ideal living situation for those looking for a short term solution to where they would be staying, great for demographics like students and business professionals who are constantly on the move. Renting was less expensive than buying a home, requiring only the financial stability of month to month payments and eliminating the necessity of large down payments when you are seeking a comfortable place to live.
As we turn the corner in the health of the housing market it is no longer correct to view renting as a more affordable housing option. While the perks of renting are still evident, including the small down payment and ease in which one could get up and go when compared with owning a home, the overall cost associated with renting is now about 45 percent higher than purchasing a home.
Much of the added cost that comes with purchasing a home comes from high interest rates on mortgages. Unfortunately, this is a cost that ranges from person to person, which makes it difficult to determine with any accuracy what rate you may pay of you were to purchase a home, or the percentage of down payment that will be required. Factors like these make purchasing a home a financial option for some but not all. Moving costs aside, many people who rent are unsure what there is to homeownership that is so much more affordable.
The obvious answer here is the fact that while you are purchasing your home you will eventually own it outright, which would leave you with no direct monthly mortgage or rental payment. You can rent a property for 20 years and still find yourself paying rent month and month.
However, there are a number of other factors that play into this equation that ultimately side with the homeownership being the ore affordable option. The first is the combination of currently low home prices and low interest rates for eligible buyers. It is entirely realistic to find a home that is cheaper to own than rent when broke down into monthly payments. The second factor to consider is the tax benefits, something we reviewed in our breakdown of the top deductions for homeowners.
This is something that renters are not frequently eligible for, though there are exceptions as in the case of home office deductions. When you are debating renting or buying a home the cost breakdown still comes down to short term cost out versus long term gain, but with more and more property sales going at such low prices and interest rates making homes more affordable than many people previously thought, the low short term costs of buying a home may finally outweigh the benefits of rental property management for many Jacksonville residents.