2011 Rent VS. Buy Infographic: Choose the Best Real Estate Investment

US Rent Vs Buy Info graphic 2011

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What is Currently the Best Real Estate Investment: Rent Vs. Buy

Over the past 3 years, the real estate market has undergone a great deal of change. Home values nationwide have fallen as a result of the housing bubble, and widespread foreclosures have kept prices low and flooded the market with available properties.

But as home prices have fallen, the cost of rentals has risen dramatically in almost every state. Nationwide, the cost of rent has already increased 60% since 2008. Analysts currently predict that by the end of 2011 that figure will rise another 4.5%, and by at least another 3% in 2012. So what's behind this dramatic increase?

Experts point to several reasons for the increase in rental costs, but the main reason is that rental properties are simply in higher demand. After the world economy became sunk in recession in late 2008, home sales plummeted. Many buyers decided that it was better to rent properties and wait out the storm than it was to buy them. No one was sure how low housing prices would fall, and that trend continued over the years, resulting in more people looking to rent. In addition, buyers who had bought property for high values before the crash found themselves unable to sell their purchases for anywhere near what they paid. As a result, they turned to renting their investments at higher rates to both pay off their mortgage and earn profit on their investment.

So what does this trend mean for today's potential homebuyers?

The fact is, with home values low and rental costs high, its the perfect time to stop throwing money away on rent and buy your own home. With banks offering mortgages with historically low interest rates, many buyers are finding that they can actually buy their own property and pay less on their monthly mortgage payments than they would in rent.

If you're an investor, buying now offers a double bonus. Not only is it easy to find low prices on a home, apartment, condo or commercial property, but you can turn around and rent it for a high monthly value. Experts agree that while housing prices are low now, they won't be forever. Many in the field believe prices are already starting to climb, and in many areas the market has reached its bottom. And while you wait for your investment to appreciate in value, you can put your investment to work by renting it and watch it pay for itself.

But the best way to take advantage of today's real estate market is to invest in it's most valuable commodity: the foreclosure homes. Foreclosure properties offer the lowest prices available on real estate available anywhere and there are currently higher levels of foreclosure properties out there than there have been in many years. These homes sell for 10%, 25%, and often 50% off their actual market value. And with a flooded market, investors are seeing incredible deals at almost every auction.

As you can see in the info graphic, the difference is clear. Taking advantage of the gap between rental costs and home values can save you money, whether you're buying your first home or investing for the future. Explore foreclosures in your state today to see the deals available to you. There's plenty out there, and with our help, you can invest in a fantastic property that will earn for you for many years to come.

Rent VS Buy Calculator

This calculator helps organize information for users to understand what may be a better solution when it comes to living expenses, and what may give better results when it comes to living cheaper.

Price of Home
Cash on Hand
Interest Rate %
Mortgage Length Years
Property Tax Rate %
Home Insurance Rate %
Loan Origination

%

Point Paid
Monthly PMI %
Other Closing Cost
Assoc. dues & maintenance (per month)
Monthly Rent Payment
After-tax Investment Return %
Income Tax Return %
Expected Inflation %
Home Appreciates at %
Future Sales Commission %
Down payment
Loan Origination
Point Paid
Other Closing Cost
Remaining Cash

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29 Responses to “2011 Rent VS. Buy Infographic: Choose the Best Real Estate Investment”

  1. Antonio Says:

    Amazing Infographic! Thanks for Share!

  2. Peter Says:

    I found this Infographic very interesting In my opinion it’s better to invest in buying a house, instead of pay rent and never see that money again, besides that everyday is much more difficult to find a cheap rent, but if easier to find a foreclosure home at an affordable price.

  3. Materace Says:

    very cool blog. Plus for the article!

  4. Greg Says:

    Many states have reached their limits with so many renters. I feel with the number of foreclosures rising there will be more renters. Banks are going to have to be a lot more easy going on the house buying process.

  5. Jonatas Leonel Says:

    A great opportunity for foreign investors especially Brazilians who have heard about the idea of buying houses or apartments in Miami, Florida. That’s the tip: it is possible to buy properties below market value, remodeling the house at an affordable cost ??and reverse the investment through the rental of property, especially rent for hot seasons. I am amazed at the number of Brazilians who come here only for shopping..

    Home prices here are guaranteed to be better than those in cities like Sao Paulo, Campinas, Rio de Janeiro

  6. reloronald Says:

    Median rents in Nebraska are on par with California…?

  7. Jeremy Says:

    I’m a first time buyer, I spent 15 years of my life renting and then I got nothing, now buying a foreclosure it is a great opportunity to have your own place and save money simultaneously!!!!

  8. Nancy Says:

    Jeremy, if the home is your primary residence, real estate taxes are tax-deductible and if you have a home office, some maintenance and improvement costs are also tax deductible… so you can SAVE more money easily!!!!!!

  9. Nicole Says:

    Great Infographic and useful calculator! Loved! +1

  10. John Evan Miller Says:

    @Reloronald There are certain states that have more renters for many reasons, but this affects the demand which causes prices to go up. Not a lot of home buyers in Nebraska and the remainder of people are only renting due to the bad areas flooded with foreclosures that have affected overall home prices stated here under Nebraska’s average home prices . California is a bit different with most of the renter not able to buy again due to low credit. Many states have gotten more expensive due to more renters.

  11. Nancy Says:

    I completely agree with you John…offer vs Demand!!!

  12. John Ragan Says:

    Great Resource! Thanks

  13. Why It Seems Like Your Rent is Crazy… | Infochimps Blog Says:

    [...] Foreclosure Deals via [...]

  14. shruthi Says:

    That was a beautiful comparison.Interesting.Thank you for sharing.

  15. Starter Says:

    If people could invest in this, they definitely should to that, because that is just so great presentation of it and every decent man should pay attention to that. Because it is important and is significant not toonly one individual, but actually for the many. Thanks a lot!

  16. Scott Says:

    Well, I was thinking about it some time and need to say that I really like this and I like say everybody should invest in the topic. A many of things depend on a tiny details, and that specifically may be that tiny detail. To be true, this is the only direction of the unlimited number, but who knows, maybe the right one. Thanks!

  17. James Says:

    The today’s real estate market is booming for investors!
    Great info!

  18. Article Site Says:

    Hey there I love your blog site!

  19. Sanda Slowey Says:

    I love your blog.. very nice colors & theme. Did you make this website yourself or did you hire someone to do it for you? Plz reply as I’m looking to design my own blog and would like to find out where u got this from. appreciate it

  20. Lee Says:

    Nowadays it’s hard to rent homes in Nebraska, DC, New York & West Virginia!

  21. Leroy Says:

    Buying a house is now cheaper than renting due to low home prices, reduced interest rates, and tax advantages; these are all reasons why it is now cheaper to buy a house rather than rent one.

  22. Russell Carter Says:

    Direct, simple, complete and very informative, congratulations!!!!!!!!!!!!!!

  23. Luis Armando Says:

    In my neighborhood there are a lot of beautiful houses that can be purchased for less than renting. So now is more than ever the time to buy instead of renting.

  24. House Says:

    Great Piece! I liked!

  25. Martha Says:

    Very interesting… thanks for share…

  26. Sarah Jackson Says:

    Great Article, Amazing Infographic!!!!!

  27. Dr Boom Says:

    If you rent a home, you are putting your money in the trash!

  28. Olin Roble Says:

    Hey There. I discovered your blog the use of msn. That is a really smartly written article. I’ll make sure to bookmark it and come back to learn extra of your useful info. Thank you for the post. I’ll certainly return.

  29. Kathyrn Piurkowski Says:

    I think this is among the most vital info for me. And i’m glad reading your article. But should remark on some general things, The web site style is ideal, the articles is really excellent : D. Good job, cheers

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