As interest rates begin to increase and home prices continue to rise, the old debate of buying vs. renting is a hot topic again. It’s more than a financial decision. Personality and lifestyle factor in the decision as well. However, cost is key, so let’s investigate.
For example, if you’re looking to purchase a 2,000 sf home in Austin (3 bedroom, 2 bath), you could be looking at $300k (average). With 10% down, interest rate of 4.5%, your monthly payments would be approximately $2,250. Rent for the same type property is around $2,155. The difference is $95/month, not a huge push either way.
If you’re curious how your situation stacks up in this debate, the New York Times offers a comparison calculator that is quite useful. Try it here