Is it cheaper to rent or buy in Baltimore?
The company and website, Trulia, came up with an interactive map that tells you, across the country, whether it is cheaper, in general, to rent or buy in this current market.
The map & calculator can take into account the current approximate interest rate, your income tax bracket, and how long you plan to stay in your home.
The total costs of homeownership are factored in — closing costs, maintenance, insurance, and taxes, versus the total cost of renting, including both renter’s insurance and security deposit.
The basic map starts out with 4.5% interest rate, 25% tax bracket, and planning to stay in your home for seven years. In that particular scenario, it is 52% cheaper to buy a home in Baltimore than it is to rent a home in the area.
Even dropping the tax bracket to 15%, and staying in the home for five years, it is still, on average, 42% cheaper to buy than rent in Baltimore.
Here is a link to the buy versus rent map on Trulia, as well as to the site’s full report and calculator to help you determine your best route to take.
If you are considering buying a home in Baltimore, please contact me. I would enjoy helping you!
Photo courtesy of Images Money via Flickr CC