Recent research conducted by trulia.com, a leading US property website, demonstrated that home ownership in the USA is 45 per cent cheaper than renting in all areas in the USA.
Article written by The Overseas Guides Company
The insightful study looked at the homes that were up for sale and for rent on the website between June – August 2012 in America’s 100 largest metropolitan areas. It compared the costs involved in owning and renting the homes and even factored in additional costs including maintenance, taxes, transaction fees and insurance.
Overall home ownership was found to be cheaper than renting in every single one of the 100 metropolitan areas looked at. As an example, in San Francisco it was 28 per cent cheaper to buy rather than rent and it was 31 per cent cheaper in New York. More astonishingly, it was 70 per cent cheaper to rent in Detroit. The significant differences in these figures can be attributed to expensive rental prices in the larger cities.
Jed Kolko, Trulia’s Chief Economist said, “Homeownership makes the most financial sense for people whose strong credit scores let them snag the lowest mortgage rate.”
Home sales in the USA are still slower than previous rates due to the fact that the recession has eaten up people’s savings, thus making it harder for them to produce a deposit. In addition, the hard economic times mean that people’s credit ratings have taken a hit meaning it is more difficult to secure a decent loan rate.
You can check out properties for sale in the USA on the Rightmove Overseas Listings. Anyone on the verge of buying a property in the USA, who will need to transfer Sterling to a dollar account to pay for their purchase could consider securing an exchange rate while it favours Sterling. Smart Currency Exchange can do this for you, as well as offer better than bank rates for all types of transfers, so saving you money. For more information on this, visit the Currency Zone.
To understand the full step-by-step process to buying a property in America, collect The Overseas Guides Company’s ‘USA Property Buying Guide’
The views and comments herein are those of the author and do not necessarily reflect the views or opinions of Rightmove Overseas, Rightmove Group Ltd or Rightmove Plc