Equifax

Finance Blog

Stay financially savvy with the Equifax Advisor.

Sign up for our FREE Monthly Email Newsletter

 

Thank you for signing up for the FREE Equifax monthly newsletter

In addition to keeping in the financial know, you may be interested in checking your credit score and report.

Understand your credit. Help protect your identity.

Equifax Complete™ Premier Plan

  • Know What May Influence Your Credit Score and Be Alerted of Changes
    Credit score monitoring with custom alerts
    Important Disclosure: The Equifax credit score and 3-Bureau credit scores are based on an Equifax credit score model and are not the same scores used by 3rd parties to assess your creditworthiness.¹
  • Help Protect Your Identity
    Automatic fraud alerts encourages lenders to take extra steps to verify your identity²
  • Lock Your Credit
    The ability to lock and unlock your Equifax Credit Report³
Save 75% your first 30 days with the purchase of Equifax Complete™ Premier

$4.95 for the first 30 days, then $19.95 per month thereafter. You may cancel at any time; however, we do not provide partial month refunds.4

¹The credit scores provided under the offers described here use the Equifax Credit Score, which is a proprietary credit model developed by Equifax. The Equifax Credit Score and 3-Bureau scores are each based on the Equifax Credit Score model, but calculated using the information in your Equifax, Experian and TransUnion credit files. The Equifax Credit Score is intended for your own educational use. It is also commercially available to third parties along with numerous other credit scores and models in the marketplace. Please keep in mind third parties are likely to use a different score when evaluating your creditworthiness. Also, third parties will take into consideration items other than your credit score or information found in your credit file, such as your income.

²The Automatic Fraud Alert feature is made available to consumers by Equifax Information Services LLC and fulfilled on its behalf by Equifax Consumer Services LLC.

³Equifax Credit Report Control™ is only available while you have a current subscription to Equifax Complete Premier. Locking your credit file with Equifax Credit Report Control will prevent access to your Equifax credit file by certain third parties, such as credit grantors or other companies and agencies. Credit Report Control will not prevent access to your credit file at any other credit reporting agency, and will not prevent access to your Equifax credit file by companies like Equifax Personal Solutions which provide you with access to your credit report or credit score or monitor your credit file; Federal, state and local government agencies; companies reviewing your application for employment; companies that have a current account or relationship with you, and collection agencies acting on behalf of those whom you owe; for fraud detection and prevention purposes; and companies that wish to make pre-approved offers of credit or insurance to you. To opt out of such pre-approved offers, visit www.optoutprescreen.com/.

4We will require you to provide your payment information when you sign up and we will immediately charge your card $4.95. After that, we will charge the card $19.95 for each month you continue your subscription. You may cancel at any time; however, we do not provide partial month refunds.

Equifax® is a registered trademark and Equifax Complete™ Premier is a trademark of Equifax, Inc. © 2014, Equifax Inc., Atlanta, Georgia. All rights reserved.

Is Buying Cheaper than Renting?

Written by Equifax Reporter on March 25, 2016 in Real Estate  |   3 comments

You’ve probably heard that buying a home is cheaper than renting an apartment. While homeownership may be a smart investment for some, personal circumstances and lifestyle may require you to look at other options, including renting. For instance, many potential homebuyers assume they must put…

BuyingCheaperRenting

You’ve probably heard that buying a home is cheaper than renting an apartment.

While homeownership may be a smart investment for some, personal circumstances and lifestyle may require you to look at other options, including renting.

For instance, many potential homebuyers assume they must put at least 20 percent down, sign a 30-year mortgage, and stay in the home at least seven years to protect their investment. However, this scenario may not work for everyone, especially those without a steady income, enough savings, or those who face a potential job relocation. In these situations, renting might be the right option, particularly over a relatively short period of time.

In addition to an individual’s financial position, the decision of whether to buy or rent may also depend on location. According to Trulia, an online real estate site, in cities such as Honolulu, San Jose, Calif., and Lancaster, Pa., buying is only about 16 to 19 percent cheaper than renting.

A prospective buyer’s income and location can also affect whether purchasing a home is even possible. A recent survey by HSH.co, a publisher of mortgage and consumer loan information, found that a buyer would need an income of about $142,000 in San Francisco and $99,000 in San Diego to afford a median-priced home (including principal, interest, taxes and insurance payments). By contrast, a buyer would need a salary of about $32,000 to own a median-priced home in Cleveland.

Ownership also involves expenses outside of a monthly mortgage, including those associated with care and maintenance of the home. If you’re weighing ownership costs vs. renting, it’s important to keep these factors in mind:

  • Utilities: If you decide to buy a home, you might be inclined to buy as much home as possible, because you imagine you’ll live there longer. Yet, that additional space will add to the costs of carrying the home, as increasing square footage will typically increase the costs of utilities. If you’re going from a 700-square-foot apartment to a 2,000-square-foot home, you can likely expect that the cost of your utilities will increase as well.
  • Insurance: Homeowners insurance provides protection against basic unplanned costs such as vandalism, storm damage, theft, or fire. This insurance is almost always required by a mortgage lender and should be factored into your monthly home payment calculation. Keep in mind that if your home is in a flood plain or is deemed susceptible to flooding, you may need to buy additional flood insurance beyond any standard homeowners insurance. As for cost, homeowners insurance premiums are typically more expensive than renters insurance premiums.
  • Property taxes: Your local property taxes fund important services and amenities including law enforcement, emergency services, public education, and recreation, but they can be expensive and should be factored in when considering a home purchase. The tax will be based on the assessed value of your property, the county, city or town you choose to buy in and its local tax rate. Depending on where you live, property taxes could tack on quite a bit to your total monthly payment.
  • Transportation: Consider the time and money involved in any changes to your daily commutes. For instance, if you move to the suburbs but your job remains in the city, you may need to start driving-or driving further-to work, adding time and miles to your day while decreasing your car’s value and increasing your gas costs. Gas prices can be volatile, so it’s important to keep in mind how a sudden increase could affect your wallet.
  • Maintenance: As a rental tenant, it’s convenient to call the landlord when your sink is broken. With home ownership, those repair and maintenance costs fall on you, and they can add up. This is even more important to calculate if you’re buying an older home. So consider putting aside at least a few thousand dollars a year for unexpected home repair or maintenance costs for expenses related to major appliances, aging structure, or pest problems. You also need to factor in costs associated with lawn care, depending on your property.
  • Homeowners association fees: Some neighborhoods require home owners to pay homeowners association (HOA) fees, for their property. The fees usually go toward the maintenance of common spaces, as well as other costs related to items like insurance, landscaping, or a pool. Before buying, make sure to determine any HOA fees and get a full picture of what they cover. You should also ask if there are any special assessments planned (or in force) and what they will cover. You can ask for a copy of the association board minutes going back over the past two years to see if a special assessment has been planned and then calculate what charge your unit would be assessed.

When you add it all up, you might find that buying a home isn’t any cheaper than renting. You might find it is less expensive to own than rent. Either way, be sure to do your research, factor in your lifestyle, and pick the most appropriate solution for you.

Related Articles:
Debunking the Top Five Renter’s Insurance Myths
How Soon After Buying a House Can You Switch Homeowner’s Insurance?
Four Ways to Move on a Budget

The information contained in this blog post is designed to generally educate and inform visitors to the Equifax Finance Blog. The blog posts do not give, and should not be assumed to provide, personalized tax, investment, real estate, legal, retirement, credit, personal financial, or other professional advice. Before making any financial decision, you should always consult with the appropriate professionals who can explain your options, rights, and legal responsibilities, and advise you on any tax, legal, credit, or business implications that may result from those decisions. The views and opinions expressed by the authors of blog posts are their own views and may not be the views or opinions of Equifax, Inc. and/or its affiliates.


3 comments

  1. Anonymous says:

    How will leasing a car affects my home mortgage approval

  2. Mayra says:

    If you are confused about that Buying a home or Renting which one is better. Then before taking any decision you should see some aspects like Cost on rent, Calculate your savings, Calculate your expenses etc. Both of the options have their own advantages and disadvantage like if you choose Rent option then you should get flexibility, less risk and responsibility etc. And, if you go for buying own house then what you will get is Security, investment for the future, property maintenance etc. So, you can choose accordingly.

  3. Chintan G. says:

    It’s really a tough decision for anyone that to buy a house or take it on rent. Both of the options have their own advantages and disadvantages. If you have budget and stable income then you can go for buying your own house and if currently you don’t have stable income then you can for rent also. Renting will also give you flexibility. And, you can go for buying your own house after few years. So, you can decide accordingly which best fits your circumstances and budget.


Leave a Comment


Name :


Commenting guidelines

We welcome your interest and participation on this forum, but be aware that comments will be published at Equifax's sole discretion. Please don't use this blog to submit questions or concerns about your Equifax credit report or raise customer service issues. Instead, you should contact Equifax directly for all such matters and any attempts to do so in this forum will be promptly re-directed.

Some other factors to consider when commenting:
  1. Registration and privacy. While no registration is required to visit our forum, participants wishing to post a message must register by creating an account. All personal information provided by forum members incident to registration is governed by our Terms of Use and Privacy Policy.
  2. All comments are anonymous. We'll delete your name, e-mail address, and any other identifying information, including details about your investments.
  3. We can't post or respond to every comment - As much as we'd like to, we can't post every comment, nor can we guarantee that we will respond to each individual message. All questions or comments about your Equifax credit report or similar customer service issues should be handled by contacting Equifax directly.
  4. Don't offer specific legal, tax or financial advice. All of the materials on this Site are for information, education, and noncommercial purposes only and this forum is not intended as a means of expressing views or ideas regarding any specific legal, tax, or investment advice. While offering general rules of thumb is both permitted and encouraged, recommending specific ideas or strategies regarding investments, taxes, and related matters is prohibited.
  5. Credit Repair. This blog is not intended as a venue for the discussion or exchange of ideas regarding credit repair or other strategies intended to assist visitors and community members improve or otherwise modify their credit histories, ratings or scores.
  6. Stay on topic. Your comment should be concise and pertain to the specific post in question.
  7. Be respectful of the community. The use of profanity, offensive language, spam, and personal attacks will not be tolerated and egregious or repeat offenders will be banned from future participation. We encourage disagreement and healthy debate, but please refrain from personal attacks on our WordPresss and contributors.
  8. Finally: Participation in this forum may be terminated by Equifax immediately and without notice for failure to comply with any guidelines or Terms of Use. As such, you should familiarize yourself with all pertinent requirements prior to submitting any response through the blog or otherwise. All opinions expressed in this forum are solely those of the individual submitting the comment, and don't necessarily represent the views of Equifax or its management.

Equifax maintains this interactive forum for education and information purposes in order to allow individuals to share their relevant knowledge and opinions with other members and visitors. We encourage you to participate in discussions about personal finance issues and other topics of interest to this community, but please read our commenting guidelines first. Equifax reserves the right to monitor postings to the forum and comments will be published at our discretion. Do you have questions or comments about your Equifax credit report or customer-service issues regarding an Equifax product? If so, please contact Equifax directly. All opinions and information expressed or shared in blog comments are solely those of the person submitting the comments, and don't necessarily represent the views of Equifax or its management.


Real Estate Archive