Welcome to The Times in Plain English   Click to listen highlighted text! Welcome to The Times in Plain English

Renting Vs. Buying

July 2, 2012
Plain English Version

Whether it is better to rent or buy a home depends on where you live or where you are looking.

When mortgage rates are low, people often think of buying. However, in neighborhoods with strong housing sales, prices are higher. Average mortgage interest rates are now 3.7 percent.

Experts say it is a good idea to rent in those communities.

Homeownership is still declining. A weak economy is to blame. The result is that more homes are available for renting.  The number of rentable single-family houses grew by two million units from 2006 to 2010. One-third of all rentals are single-family houses. The costs of being a renter are often $500 to $1,000 less per month than purchasing.

Renting helps landlords owning unsold homes. It helps families who do not have the means for down payments. However, rental asking prices are going up.

Look to rent in housing markets where the cost of ownership is high. It means good neighborhoods, schools and services. A report identified five housing markets where experts say renting may be more affordable than owning.

  • Northern New Jersey
  • Long Island, New York
  • California
  • Seattle
  • Honolulu

The decision to rent or buy is complex. The cost of owning a home includes maintenance and the possibility that the value of the house might go down. Experts advise talking to an accountant before making the decision.

The Wall Street Journal

Print Friendly

In Brief

Selling Kids on Vegetables

How to get kids to eat vegetables? Marketing is the answer. You can call it tricks or just good ideas. Whatever works.

School lunchrooms are...

What Do You Call Yourself if Your Mother is White and Your Father is Black?

On the 2010 Census, President Barack Obama, identified himself as  “black.” But millions of Americans consider themselves “bi- or multi-racial.”  And their numbers are...

Mending Walls, By Robert Frost

Robert Frost (1874 – 1963) was a great American poet. Just before he died, he read his poetry at the inauguration of President John...

Pineapple on Pizza? The Global Debate

The President of Iceland started it. Last week he joked that pizza topped with pineapple should be outlawed. His remarks set off a debate...

Archives

Dictionary
  • dictionary
  • English Dictionary

Double click on any word on the page or type a word:

Powered by dictionarist.com
Click to listen highlighted text!