Following are the top 7 reasons why it is better to buy than rent in 2011

1. Buying is the smart thing if:  If you go online and type in rent vs buy, you'll find many graphs that will show you how buying a property, (after including tax breaks vs rental increases) will start to pay off for your family after 6 years.  If you are looking to take advantage of having a stable payment each month, providing a roof over your family's head and enjoying the fruits of your own property, and PLAN TO KEEP THE HOME FOR MORE THAN 6 YEARS, buying is the smart thing to do. PLUS if you plan to own the home for at  least 10 years, you have a decent chance that it will accrue equity for you for your future. Scoffing are you after what we've just been through? Look for my next blog that will show that even with the dips in value since 1968, buying is still a GREAT investment... even now.

2. Affordability is at an all-time high. In markets across the nation, including the inland areas of California, prices have declined by nearly 40-50%. Yowsa!

3. Buyers can take advantage of tax benefits of home ownership. Perhaps the biggest tax break is reflected in the house payment homeowners make each month. For most, the bulk of that payment goes towards interest. All interest is deductible, unless the amount is more than $1 million. Property taxes are also deductible.

4.  RENT KEEPS RISING: 10 years from now, if you purchased your home with a fixed rate loan, your payment will be the same. Your rent will have gone up 5-10% per year. If you were originally paying $1500/mo rent, at the end of 10 years you would be paying $2500-3800/mo.

5. Buyers can purchase homes with little or no down payment. Qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA), which does not require a down payment. Another loan product are those insured by the Federal Housing Administration (FHA), which require only a down payment of 3.5%. There are also first time buyer programs in different aeas that can be taken advantage of.

6. Mortgage rates are at all-time lows. Take advantage of low 30 year fixed rates. We haven’t seen rates this low in the last 3-4 decades.

7. It’s yours. It feels good to own your own home. After all, you can paint it any color you want, make improvements, and plant a little garden, and finally have a dog in your yard! .

by Ellen Hayes, Realty Executives. License #01062684.    21 years of experience in Residential Real Estate.  Call for my 5 point proven plan to get you a home or sell your home. You can contact me at : ellenhayes@realtyexecutives.com, or 619-261-6245