Rent vs Buy in 90024>Question Details

Betteokahn, Real Estate Pro in 90024

should a person rent or buy?

Asked by Betteokahn, 90024 Sat May 19, 2012

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Answers

19
Kawain Payne, Realtor, Notary’s answer
Hello Bette,

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.

Best Regards,
Kawain Payne, Realtor
0 votes Thank Flag Link Mon Jan 28, 2013
A person should do what they want to do within their capabilities.
2 votes Thank Flag Link Sat May 19, 2012
It all depends on your financial stability, future goals, and really knowing what you want to do and where you want to live. Can you afford the hidden cost of homeownership?
0 votes Thank Flag Link Thu Jun 6, 2013
It all depends on their financial means and future plans.
0 votes Thank Flag Link Sat Feb 23, 2013
Advantages of Renting :

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.

SOURCE(S):
http://www.findrenttoown.com/massachusetts
0 votes Thank Flag Link Sat Feb 23, 2013
Should not ask a realtor that question (smile). Should buy if consider the interest rates are under 04% and homes are at lower prices than 5 years ago. Lower sales prices coupled with interest rates below 04% this opportunity is not going to last for ever. Right now buyers have more buying power. In some areas the inventory is low with low short sales/reo inventory. These areas are seeing a slight increase in values. The final decision is yours consider all of your options. Hope this helped.

Gail Mercedes Cole
EXP Realty
0 votes Thank Flag Link Sat Feb 16, 2013
Why are you asking this question if you are a broker? You should know the answer.
0 votes Thank Flag Link Thu Jan 31, 2013
Buy!!! For sure, rates are still super low... Buying is cheaper then renting.
0 votes Thank Flag Link Thu Jan 31, 2013
Buy! When you own your own house it's yours to do as you please, no asking the Landlord for permission. You buy a house then you change it into a home Remember....Your home is a Haven in a Hectic World.
0 votes Thank Flag Link Thu Jan 31, 2013
I always recommend buying because the potential of building equity out-ways the expense of rent.
0 votes Thank Flag Link Thu Jan 31, 2013
Dear Bette,
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.
0 votes Thank Flag Link Thu Jan 31, 2013
To rent or to buy? This is a great question, and a very common one. A lot of factors come into play, as others have pointed out, but right now is really an excellent time to buy. Plain and simple.

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!

http://getnewdigs.blogspot.com/2012/10/why-rent-when-you-can…
0 votes Thank Flag Link Mon Jan 28, 2013
Hi Betteokahn:

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
katbecker@prula.com

Feel free to contact me directly if I may be of assistance to you.
0 votes Thank Flag Link Tue May 29, 2012
Each to their own, however, depending on the area... owning could be less expensive than renting.
0 votes Thank Flag Link Sat May 19, 2012
It is individually as each person has a different financial situations, goals etc.

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.
0 votes Thank Flag Link Sat May 19, 2012
Hello Betteokahn, here is a link to a great article which appeared recently in the NY Times. It may answer your question; http://www.nytimes.com/interactive/business/buy-rent-calcula… -
0 votes Thank Flag Link Sat May 19, 2012
Wow...that's a big question! The answer is one that only you can answer.

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.

Good luck.
0 votes Thank Flag Link Sat May 19, 2012
With home financing at the lowest level in recorded history and home affordability at an all-time high, buying is definitely a smart move provided you have the financial stability and resources to do so. The Westwood market (as well as the other Westside micro-markets) is on fire as buyers have realized pricing to have bottomed out and that now is as good as it's going to get. This actually has been the case ever since January.

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.

Craig Whitlock
Realtor®
Coldwell Banker Brentwood
310-488-4399
craigwhitlock@coldwellbanker.com
0 votes Thank Flag Link Sat May 19, 2012
Question too vague but let us say this. Buying now is a good idea with record low interest rates and if you need a tax deduction. But ROI is usually long-term, not short-term. http://www.naplesrealestateguys.com/blog/
0 votes Thank Flag Link Sat May 19, 2012
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