Today in our Market Updates series, we're going to talk a little bit about the cost of buying your home, versus renting it. Our friends at KCM (KeepingCurrentMatters.com) have provided us with an excellent infograph to help illustrate the situation.
The graph above shows the percentage of your monthly income you can expect to pay on your housing costs when renting or mortgaging your home. Historically, you could have expected to spend 22% of your monthly income on a mortgage payment, and 25% on a monthly rent payment. However, today we can see that the percentage of your monthly income that would be spent on a mortgage payment has dramatically decreased (bringing it down by 6.3% to a total of 15.3%), while that of a rent payment has dramatically increased(bringing it up by 5.1% to 30.1%).
For some reason, especially among younger people, there is a certain stigma about buying a home, mostly because they think it's more expensive than renting one. However, we can clearly see that this is not the case! Buying a home is an investment in yourself, your future, and your family.
What are you waiting for!