Financing in North Bergen>Question Details

Enriqueta Ga…,  in Colleyville, TX

buying versus renting

Asked by Enriqueta GarciaOakley, Colleyville, TX Fri Dec 3, 2010

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That is not a simple answer. That depends on your needs and what is best for you as an individual. This is a good market to buy in in MANY areas(some not so much), but you should get with an agent who can advise you on that.

In my area, it is cheaper to own than to rent. However, even with that I advise some clients based on their needs to rent. Why? Because some don't want to be locked into a home long term, or are just not in a situation where it makes sense. Ask yourself where you see yourself in several years, and what you do or do not want to deal with when it comes to a home, and that may answer that question.
1 vote Thank Flag Link Fri Dec 3, 2010
Hi Enriqueta, I am agree with those people who think it is better to buy now than renting in most of the cases, I understand in few cases is better to keep renting. With today’s housing market where the prices are already low in Hudson County area, and historic low interest, definitely your mortgage payments will be very low if you buy a 2 family or 3 family house. Just let me show the math and you can figured out the rest, Average price of 2 family house in House County is 240k and taxes are around 8k, if someone buy a 2 family house the PITI (Principal Interest Tax and Insurance) will be aprox. 2k +/- for a month (check with a mortgage rep.). If someone is renting provable are paying average around 1200 plus util. It that make sense to you why you should buy?. There is another 2 thing you have to put to the math.
* In Hudson county area, the rentals are going up, according to the statistics, during the last year went up 4%, base in many factors, but the main factor there is no new rentals developments going on in the area, and the number of tenants has been increased.
* The other factors and very important factor is: A simple example. Let suppose you buy a house financed for 30 years and you pay your monthly mortgage with a fixed interest rate the same amount for 30 years. At the end of the 30 years the house is paid off, and your equity is the total value of the house. Now let say you live in one apartment for 30 years paying the same amount (in real life will be increased every year base in index factor) after 30 years you have nothing still looking for rental.
0 votes Thank Flag Link Tue Nov 15, 2011
In this short video I wanted to review a chart that was part of some research done by the Federal Reserve on Owning a Home versus Renting a Home.

The average owner is 31 to 46 times more wealth simply due to creating equity in their home.

Please call a professional Realtor to get an understanding of the market and how it applies to your situation.

http://greaterbostonvoice.typepad.com/the_greater_boston_voi…
0 votes Thank Flag Link Mon Sep 12, 2011
Wait another year to buy, prices are declining. Good Luck
0 votes Thank Flag Link Thu Jun 2, 2011
Hi, This will largely depend on your needs and financial snapshot. It also depends on the market you are in and if prices have dropped enough to make you feel like you should really buy now. Some areas are doing better then others and some of the areas that have dropped alot may have poor underlying economics. So investing in those areas may not be a good choice. I think renting is a great way to test out living in a particular area or home style. Mortgage rates and prices are definitely bringing alot of buyers into my market at the moment, I can't speak for others.

Sincerely,

Christopher Pagli
Licensed Associate Broker
Accredited Buyer Representative
GREEN Designated Agent
Legends Realty Group
914.406.9023
0 votes Thank Flag Link Sat Dec 4, 2010
Well with prices coming down, renting can no longer be viewed as simply tossing money out the window. In todays market its more like a wash, for example, a years worth of rent may cost you 12,000, however the house you wanted to buy may drop 12,000 in price during that same year, or if your lucky, the more likely scenerio is that the house will drop more then 12,000 over the course of the year in which case you made out pretty good by renting instead of buying today.
Web Reference: http://www.sjrates.com
0 votes Thank Flag Link Sat Dec 4, 2010
rent for now, save, and in a few years it will be a good time to buy again
0 votes Thank Flag Link Fri Dec 3, 2010
It all depends on your goals.... are you asking about what is the least expensive way to live? that may depend on where you live.
0 votes Thank Flag Link Fri Dec 3, 2010
Hi Enriqueta,
Todays market is a big fat GO as far as buying a home is concerned.
Of course, you must have the good credit that mortgage lenders are now requiring.
Lower prices, tremendous mortgage rates all together make homeownership a really great investment today.
Murph
0 votes Thank Flag Link Fri Dec 3, 2010
Hi, Enriqueta. Given current market prices (the ability to now buy a home for roughly 25-35% of it's current or recouping value, and to move into areas with better schools and community and municipal service that were previously denied one due to income) and the unprecedentedly low interest rates (paying only 6.00 on every 1,000 borrowered!) now is definitely the time to buy!
0 votes Thank Flag Link Fri Dec 3, 2010
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