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Central Valley Market News

By Daniel Del Real | Agent in Modesto, CA

Rents are at an all time high: Buying homes is ideal

For some renters the housing downfall of the last several years has left them with no desire to become owners, but for those with patience and with appropriate credit scores, home owning is becoming a feasible reality.Wall Street Journal recently reported in its article, "As Home Rents Push Higher, Owning Regains Its Appeal"  that, historically, the cost to rent an apartment has been about 10% lower than the after-tax cost of owning a home, but by the end of 2011, the cost to rent an apartment was about 15% higher than the cost to own a home!

It's 15% more expensive to rent an apartment! It costs you more to rent than it would to buy a home-a home which you'll own in a matter of years depend on your mortgage contract.

The decline in home prices, coupled with lower interest rates (at a record low) boost the demand for homes at entry-level prices. In Modesto, entry-level homes are averaged at $125,000 and they're is over 175 on the market for that price or lower. Many future owner we'll have monthly payments of about $850 after taxes. In contrast, the average price to rent a home in the Central Valley is well over $1000/month.

Once-reluctant home buyers should now move into the housing market and investors should take advantage of the rates! Contact me and we'll get you into the homeowners club.

What side are you on?

Feel free to snoop around my blog I have published plenty of success stories showing what the Wall Street Journal is talking about. 

Here's a quick link to one of my stories: Why rent when you can own

Happy House hunting.

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