It's a common misconception, not only in the Reno Nevada real estate market but throughout the country, that rent actually costs less than owning a home. Yes, there are certain expenses that go along with owning such as property taxes, homeowners insurance as well as upkeep and repairs, but when one looks at the bigger picture, over time it actually costs less to own a home instead of renting.
Many people that are hesitant to purchase from the Reno Nevada real estate market wonder how this can be but Reno Nevada real estate agents explain that it's quite simple. If a potential buyer can obtain a traditional 30-year mortgage with a low rate, their savings can be anywhere from 5% to 63% when compared to renting. This is because with a locked in mortgage rate for the next 30 years, a homeowner can guarantee that their mortgage payment won't change whereas with renting, this isn't the case; in fact, rental costs typically increase at a more dramatic rate than mortgage rates. According to one report, mortgage rates would have to be above 10% in order for renting to be more affordable than purchasing a home from the Reno Nevada real estate market.
Not only in Reno Nevada real estate, but throughout the nation, rental rates are increasing despite the fact that the increase in home prices has slowed down some. If you continue to rent, there's no telling how much your rental payment could increase throughout the years. Buying a home from the Reno Nevada real estate market is a smart decision when it comes to your future and your finances. If you really want to make a sound financial decision the best thing to do is buy now while mortgage rates are low and increasing property values have slowed down some.