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
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 â€œforcedâ€ savings, which can be important when the buyer pays down the balance by a substantial amount.
Gail Mercedes Cole
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.
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!
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.
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