- With all the crazy changes going on in our housing market --- is it still better to buy than rent?
For the first time in 2 decades a 30 year fixed mortgage rate rose to over 7%....but.....home prices are going down and sellers are more willing to negotiate.
- But is it still better to buy than rent?
Housing Expert Todd Wiley says he thinks it's still better to buy - but sees extra difficulties ahead. "The last year all of the local taxes went up. The property values went up....and now we've got these elevated interest rate increases we're just not use to seeing!" Wiley says if you have cash - you'll get the best deals anywhere because it's getting more difficult to be approved by a lender.
Houston Housing Market is Turning a Corner
He also has some advice if you want to rent while you're saving up to buy . "If you can get in with a home owner/renter who has owned the house for at least 3 years, they are going to have a great interest rate themselves - so they can offer you a lot lower rent!"
Wiley emphasizing ownership: "If you're able to purchase a home - in the long run - it will ALWAYS be better to buy than rent. BUT - it's going to be a lot more challenging these days." On the pro-renting side, Wiley says be the one who is renting out space to a renter. In fact: "Buy a house, then put it into a short term market anywhere from a few weeks to several months. For example, an airbnb or corporate lodging. There's a lot higher top-line revenue!"
Rents are falling and are predicted to continue doing so into next year.
Todd Wiley is the CEO of Texas Corporate Housing Solutions
Rent vs Buy Calculators:
rent vs buy