That is a great questions and ultimately, you are the only one that can answer it!
However, many people choose renting or buying based upon their needs. So some questions you may want to ask yourself is...
1) What is your credit like? Are you able at this time to obtain a loan?
2) How much money do you have saved up for a down payment?
3) Do you need a tax write off? You can write off the interest of a mortgage loan, which may reduce your tax obligations.
4) Are there properties for sale within your price range and in the area you want to be in?
5) How much will rent be vs. a home mortgage and will you be able to comfortable afford either monthly payments?
6) How big of a space do you need? Bedrooms/bathrooms, garage, yard, storage, etc. What are your requirements?
7) Do you want a single family home, condo or investment property where you can live in one of the units?
Keep these questions in mind and you will get your answer.
It is a great time to buy right now...however, inventory is low...and many of the homes that are priced appropriately sell fast with multiple offers.
Good luck and all the best,
Kat Becker, Realtor
Prudential California Realty
Feel free to contact me directly if I may be of assistance to you.
1.The renter has more mobility and flexibility to move since leases tend to me short-term.
2.Insurance costs are lower for renters because the renter only needs to insure the contents of the rental property and not the structure itself.
3.The cost to move in is lower. There may be no down payment and less deposits required.
Advantages of Buying :
1. There are instances in which the cost of ownership can be less than renting.
2.The buyer has control of the property and realizes that the acquisition of the home is a capital gain.
3.The buyer has “forced” savings, which can be important when the buyer pays down the balance by a substantial amount.
Gail Mercedes Cole
For instance, a borrower can qualify for an FHA loan from fico scores between 500-579 for 10% down payment. If a borrower has the minimum 580 fico score, they may qualify for FHA standard 3.5% down and if they don't have that they may consider .5% (half percent down CHF Access) which is a three percent second with a small monthly payment and the program can contribute towards their closing costs as well. This program aslo offers Jumbo from $417k up to $729,750 in Los Angeles county with a minimum 600 fico score to qualify.
There is also another half percent down payment program CHDAP with a minimum 640 fico score with a silent second which has to be paid in full when the borrower refinances or sells in the future. They can buy a home with minimum out of pocket expenses with premium financing which can cover portions of their closing costs.
The borrower depending on their fico scores and how much they have to invest into the down payment and closing costs has to choose the loan program to benefit them the best financially. A borrower with a minimum 620 fico score may consider conventional financing with NO Mortgage Insurance (Lender paid MI) or 3% down payment conventional with a minimum 700 fico score.
I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify for programs, rates and terms as necessary. I can raise fico scores within 3-4 days in most cases. I offer Rent vs Buy listings to email to study and consider and in most cases you can buy and pay less than rent and with about what it costs for a first and last deposits on rentals.
If a borrower can qualify to buy, whey rent especially in this market where rents as well as home prices are on the rise and we offer record low interest rates. It only takes a few dozen questions to qualify a client in minutes with these documents http://tinyurl.com/aepwnh4 for the best loan program to fit their needs financialy. I provide home loans throughout CA and assist many Agents/Brokers clients with their financing needs as well. Once I receive the items on the needs list and ask a few dozen questions, I can issue a pre-approval or DU Approval and they can get out shopping for homes, condos, townhomes of their choice and submit offers. Here are some links to study and consider.
Sheryl Arndt, Real Estate Broker - Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
9am till 9pm 7 days
Personally, I hated being a tenant and haven't been one since I was in college. In my opinion, there is no comparison as far as quality of life and future returns are concerned. Regardless of our present economic circumstances, Real Estate is part of almost every investment portfolio.
Should you rent or buy?
Only YOU can answer that question.
If you are a well qualified buyer, meaning you meet the credit and income requirements to get a good interest rate and terms you can really afford, you should buy.
It would also be beneficial if you have some funds for closing cost and a down payment.
In some cases you can end up paying more per month in rent than you will pay for a mortgage.
Homeownership has rewards that far out weigh renting, but the key is to make sure you are ready to buy. I suggest my clients work with a direct lender ,and get a real clear picture of what it will cost them to secure a loan, and make sure they can AFFORD the monthly mortgage.
If for some reason you are not in the position right now to buy and you have to rent, try not to spend a big cunk of your income on your monthly rent. Leave yourself enough money in your monthly budget to save for a home of your own.
Kawain Payne, Realtor
Even if you don't have enough to afford your dream home right now, you can still get a great deal on a starter home. Then watch values shoot up over the next few years and eventually sell your home at a profit.
With interest rates so low, and prices just now starting to climb, it's the perfect time to enter the housing market! Check out my blog post or contact me if you want more info. I'd love to help!
I specialize in Under 640 Fico Score Loans and offer credit repair at no cost to raise fico scores to qualify. Here are some links to study.
Sheryl Arndt, Real Estate Broker – Sr. Loan Officer CA only
REO & Short Sale Specialist
Credit Repair At No Cost
20+ Years Experience
In general, I definitely say buy now: great rate, low prices, will build future value and equity as the market is in almost the lowest point in this cycle and enjoy the tax saving.
Rent - is no, if you can, as the rent went up a lot due to many new renters that lost their home, jobs etc.
Buy as many that you can now and you will smile more in about 5-7 years.
If you can qualify for a mortgage, have a downpayment, and plan to live in one place for at least 5 years, then buying is far better than renting. This is assuming that all the numbers involved fit comfortably into your budget.
If the financials don't come together for you and you are still in transition in your life, then it is better to rent.
In the end, I believe that home ownership is a function of your life and its various cycles. Over time, home ownership provides stability for you, your family, and the community. But it has to be the right time for you...and only you can answer that.
Also bear in mind that when you buy, you're building equity and creating tax benefits whereas rental dollars get you nothing but the right to use and possess a home for a month. If you were to wait a year or two to buy, you could well find that market pricing and mortgage rates have increased substantially.
The rental market on the other hand has tightened considerably with landlords in a strong position to charge higher and higher rents. Rents as a matter of fact have been predicted to rise as much as 10% through next year. This is a key reason why so many investors here are acquiring income properties.
There's some great properties on the market here at varying price points and my loan officer has any number of attractive mortgage products tailored for first-time buyers. If this is an option that you'd like to investigate further, I invite you to contact me for a low-key consultation.
Coldwell Banker Brentwood