While we still have market corrections in various parts of the country and job stability in some areas are still questionable is it smarter to buy vs rent in today's market?
First thing I tell my buyers if they have not already, is to check with a CPA and/or financial adviser and /or at the very least team up with a seasoned loan officer who can show you the monetary values of various loans in comparison with the rent a buyer is dishing out each month and any tax savings from a home loan.
In most of our area it appears the bottom hit a couple of years ago in terms of pricing. Our inventory is rather low right now. Which presents a problem as buyers are starting to come out more this time of the year.
Interest rates are still low.
If I were a buyer entering the market first thing I would do is to make as reasonably sure as possible my job security. Second if married, and both spouses working I would see what I could afford on one salary vs two in the event one of the spouses is laid off and cannot work for health reasons. Third-HOW MUCH rent are you paying?
If you are paying $1700 or more you most likely can afford to purchase.
If you are purchasing think LONG TERM. The days of old of appreciation per year we saw some years back will not hold true.
Rents are going up. That is due to all of the investors who have bought up the foreclosures and auctions....With the percentage of those borrowers who had to short sale and/or lost their homes to foreclosure starting to exceed available rentals thus making the value of rentals go up.
While I believe we will see a spike in the real estate market, I believe we still see some valleys over the next few years. There are still many foreclosures and short sales in the pike that have not come on the market yet.
Having stated that with interest rates so low and a buyer has done their research there are some good buys out there now.
My barometer for full market recovery lies with "WHEN WE SEE THE JOBS COME BACK" and I am not talking minimum wage jobs.
Markets vary throughout the country and a buyer needs to review their specific area and make decisions based on the current market trend in the specific areas buyer is interested in purchasing.
I just had a buyer come to me with particular needs and wants. She based her mortgage payment on her salary only and not with her boyfriend of many years. She took her time, คอนโดมือสอง ราคาถูก did her research and we finally located, secured and closed last week.
She took into account what was going on with her personally, current rents she was paying and what it would take to find a loan at fixed interest rate. She did a great job.
Locked in at 30 yrs with a mortgage payment approx $600 less than current rent which most likely the rent would continue to spiral up. She can now base her finances on a known and stable figure. PLUS she will get a tax break and in this particular instance appears to have bought where prices bottomed out a few years ago.
So when that question is asked is it better to buy or rent in today's market several factors have to be taken into consideration. For many buying a home is the absolute best thing for them today. For others continue to lease or rent is their best option.
DO NOT PURCHASE out of emotions.....Make it a BUSINESS decision...barring any catastrophic event a buyer will do well in this market.
Make sure you allow for repairs and replacements in your budget. Take into account your commute and gasoline prices.
Here's to your successful real estate venture!
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