Why rent when owning your own place can save the rent you pay for your future?

Question

Mortgage Rates are artificially being held to the lowest levels in generations of Americans by the Fed! Property prices have leveled off to all time lows for the last twenty years in some cases! Opportunity for home buying is at an all time high! Why wait any longer?

Answer 1

That is a good question. Depending on your situation though, renting may be a better option. Most people prefer renting due to the down payment issue, but now there are loans that you can qualify for that require very little or no down payment at all. However, there are still more expenses associated with buying a home. You have taxes, HOAs,insurance, replacing appliances and just the natural wear and tear of the property.

If you plan on staying in a home for at least 7-10 years, then these expenses may be beneifical, but if you are not sure where you will be, renting may be the better option.

There are pros and cons to both situations. I would suggest speaking to a Realtor about your own personal situation to find out which is the better option for you.

Answer 2

I am a Broker Associate in Columbia SC and a Certified Residential Specialist CRS. Over the years things have changed if you like to purchase a home. I advise potential buyers that if they are not going to be in the house for 5-7 years it may be better to rent. It is said that the market will stop to go down and go up especially 2013 and 2014, that is good news and in some places of the country ithe market already has turned around.

In general buying a house is best because it wil be quite a bit less than rent. Trulia has a Rent VS Buying Blog that is very interesting and you can see wherever you live what the difference is on their charts.

Interest and Property Taxes are tax deductible, rent is not. Most buyers today have trouble with the 3.5% down payment for an FHA Loan and then add the Private Mortgage Insurance PMI at 1.15% to that which has gone up. But still, for many buyers the mortgage payment is still less because the interest rates are really low currently and that makes a big difference. I remember the days when we paid 16 to 17% interest for our mortgage and still purchased a home.

I hhope this helps. It depends if you are staying for a while or if you think you may be relocating (especially important is you are military)

If you live in the Columbia SC and Lake Murray area do not hesitate to contact me if I can assist you. Thank you.