In tough economic times it’s easier to just rent an apartment or home. In the end, you will probably be paying much more in rent than you would in a mortgage payment.

One the prime examples of where a mortgage is almost always cheaper than rent, is when you live in a large city. Las Vegas, Los Angeles, New York City, and Dallas are a few of the major cities where you can buy a house for cheaper than you can rent. In these cities it isn’t uncommon for rent costs to rise to well over $1,000! That’s quite a chunk of change for struggling families.

Assuming that you have decent credit and can apply for a loan, a home or apartment purchase can be surprisingly cheap. The best way to go about doing this is to raise at least 25% of the total amount owed. The bigger your down payment, the lower your interest rates and the less you owe. This is an excellent way to start owning your first or second home. If you prefer, you can even buy an apartment for extremely low amounts.

Of course, during tough times many people are quickly catching on to renting out their homes. Some single individuals and couples are getting a slightly larger home, and then renting a room or two. They can generally charge between $200 and $400 a month, which results in most of their mortgage being paid off each month! This is a little harder to do with an apartment, since many apartments don’t allow additional people unless they are part of the lease as well.

You also have the option to live how you choose to live. In many homes you must pay a deposit for most pets, or you can’t have any at all. This tacks on a huge sum each year that goes to nothing. With your own home you can have 3 cats and a dog if you like, all without the extra payments. It may seem silly now, but once you own your own property you will be grateful for that.

Cheap real estate is currently abundant, especially if you buy now. When the real estate market is not as strong, you can quickly find properties that are cheap and easy to buy. Even people with less than ideal credit are finding it easy to buy their first home. You can also get a tax credit for your first home purchase, which can make a big dent in your payments if you choose to put it towards that!

In Conclusion

The flexibility and cost of a new home is surprisingly lower in recent years. Now is the time to buy, and you can save quite a bit buying instead of renting each month! Make the change as soon as possible to prevent losing more money.

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