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Jorge Alfaro's Blog

By Jorge Alfaro | Agent in Hawthorne, CA

Should you buy or rent a home? Cost gap narrows


"Statistically, it's a great time to buy," said Hessam Nadji, managing director of Marcus & Millichap. "Psychologically, the consumer doesn't feel like it's a great time to buy."

Thinking of buying a home? Consider this: The gap between monthly rents and mortgage payments is at its lowest level in almost 20 years.

In some markets, the difference can be less than $100, according to a national study conducted for The Associated Press by Marcus & Millichap Real Estate Investment Services.

The analysis of 45 metro areas found the difference between the monthly mortgage payment on a median-priced home and the median rent is down to $256. The last time that gap was nearly that small was in 1993, when it fell to $264, according to the study.

There are tax benefits to buying a home, including capital gains deductions for property taxes and loan interest. A home appreciates in the long term and acts as a hedge against inflation. It helps diversify your assets, builds equity and provides a means of forced savings as you slowly pay down the principal.

OBJECTIVE REAL ESTATE
6399 WILSHIRE BLVD SUITE 908
LOS ANGELES, CA, 90048
Office: 213-417-3898
Cell: 310-486-2132
Fax: 877-310-3002
www.objectivere.com

Comments

By dannystorresr,  Wed Mar 21 2012, 17:06
My girlfriend is renting a 3 bed 1 bath in the South Bay area for $1,900 a month.
She's found some great duplexes for $350,000 for $2,300 a month inlcuding taxes & insurance

...with her VA Loan, zero down payment, and Rental income of $900,
She gets to own 2 units for $500 less than what she currently rents for.

DEFINITELY BUY!!!

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