The short answer is, 'It Depends.' Yes, realtors are wired for sales, yet the highest ethic is that of 'Service'. You must frame your decision to purchase carefully. In Center City Philadelphia Rental rates are starting to move up while sales inventory is plentiful and interests rates are at historic lows. Preferably you be able to put down 20% of the purchase price to eliminate PMI and generate a lower interest rate. Furthermore, with a purchase you are able to deduct a portion of your mortgage interest ... I have never fount this less than 20% of the mortgage payment. Then over ten years of ownership you will have generated about 20% equity by paying down the mortgage. Finally, now that the market is healing, appreciation will play a greater roll in your investment decision. In conclusion, because seller's want to bargain, you will have some attractive options 'within walking distance'. So if you have 'job Security', absolutely consider a purchase that is appropriate for your circumstances.
Contact me for additional consultation, I am happy to help!
Coldwell Banker Preferred (Avenue Arts)
1401 Walnut St Philadelphia 19102
Congratulation on selling at the peak 6 years ago. Rent. Owning a house is work and it isn't cheaper. Stack your cash in retirement accounts, where they are protected from bankruptcy. Who cares about equity--if you buy, you'll have your house paid off when you're 90--like I said, who cares. Nobody knows the future, but we do know that you will probably encounter some hefty medical bills at some point. Maybe talk to a financial planner to discuss your options. And yes the realtors will always say to buy. Good Luck
Locking in your housing payment on a 15, 20 or 30 year fixed mortgage may be a great solution for hedging your 403B and other savings from the widely anticipated inflation that is probably coming.
Even if you suspect that housing prices will continue to fall your true cost of ownership may be higher in the future if interest rates rise. With new lending guidelines and changes to fha, fannie mae and freddie mac proposed by the Obama administration it is likely that interest rates for mortgages will rise in the near future.
Bottom line you should start looking at what financing is available to you how much you can afford to spend and how does that price point compare to what you can rent. Then start shopping for a great deal. Theyaare out there if you are willing to take the time to find one.
Have A Good One!
For your best interest and security, I believe it is better to buy at this point in the market. Interest rates are at an all time low, and rental payments are at an all time high. I am confident with your income and no debts, you will be able to afford what you want, plus you are acquiring equity, instead of making your Landlord rich. Do not be concerned about your age, you can get a mortgage. And if anything does happen to you, your equity passes on to your estate. Call me and we can formulate a plan for you. If you like what you see-move forward, if not, then go ahead and rent again. Andy Brown, The Condo Shop, 215-779-2674.
The record low home prices and interest rates make this a wonderful time to buy a home for most people. Your trepidation is certainly understandable and your best bet would be to speak with a couple of mortgage lenders to find out what you would be qualified for and how your financial picture will look if you purchase a home. It would cost you absolutely nothing to get their opinions. But make sure you only allow your credit to be run one time and utilize that one report for all inquiries.
I can certainly recommend a few mortgage lenders for you to speak with to help you make the best decision for you.
I wish you much luck!
Would love to discuss this with you in person rather than over the web. The mortgage guy in my office is fabulous and in a short phone call could give you your answer or a few different options. Give me a call on my cell anytime - 267-269-6288. Best, Emily