Buying a House Will Save You Money

Being indecisive can be a blessing or a curse.

You might not be an indecisive person by nature, but when it comes to making big decisions, it can be hard to know which choice is right and which is wrong. There are pros and cons for so many things in life and a little bit unease and some unsure feelings are normal and healthy.

That said, what does data support?

When it comes to one of the biggest decisions in life, the proof is in the data.

If there’s ever anything to be a little bit indecisive about, it’s whether to buy a home or to rent a place.

They each have their ups and downs, but either way, it’s no easy task to determine where to live.

Cost is a significant factor, especially when factoring in the market, the increasingly backbreaking student loans and the multitude of other financial factors plaguing buyers today.

According to data, buying a house might just be the ticket to saving money.

To determine what’s best for you, take a look around. Where are you located? Where are you looking to buy? What about rent?

The answers to these are the key to figuring out the most financially informed decision for you, no matter how indecisive you might be.

According to Ris Media , the study by GOBankingRates looked at the different costs of renting and buying and then found the difference between the average price of a monthly rent vs. a monthly mortgage payment.

The data assumed the buyer put down 20% on a 30-year, fixed-rate mortgage and accounted for insurance costs and taxes.

For many states, the cost of buying was considerably more beneficial than renting.

The state in which it’s more financially beneficial to buy are Alaska, Arkansas, Connecticut, Delaware, Florida, Georgia, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, New York, North Dakota, Ohio, Oklahoma, Pennsylvania, Rhode Island, South Dakota, Tennessee, Texas, Vermont, West Virginia, and Wisconsin.

In several states, the difference in costs between renting is staggering. In Alaska, for example, buyers save $373 every month. In New Jersey (which had the highest difference), buyers save $566, which adds up to $6,792 a year. That’s a lot. Seriously.

Though things like maintenance might add up, the difference in savings is still pretty crucial when making the decision to rent.

According to Time , there are some enticing benefits to going all in and becoming a homeowner.

Not only are interest rates down, the mortgage interest and property taxes will translate into lower IRS bills (hello, tax returns!) and, with monthly payments, will also increase home equity with a mortgage on your side. If the prices of area homes continue to rise, a buyer will do even better if they decide to sell.

Time also reported that the prices of rent have continued to rise, so this price dissonance may only continue to grow, making the savings for buyers even more clear.

There aren’t only financial benefits, there are also some emotional benefits. A Fannie Mae survey found that 76% of younger renters found buying a home to be a more sensible choice for financial reasons and 59% agreed for lifestyle reasons.

Though buying comes with its own risks, it has plenty of pros.

Being indecisive might have its perks, but in this case, the data speaks for itself.

Dan Laugharn
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