Should I buy or keep on renting?
Tuesday, August 30, 2011
Home prices have taken such a beating and demand for rental units has increased so much that it’s now cheaper to buy a two-bedroom home than to rent one in most major U.S. cities. These is just the signs of the times!
According Trulia (www.trulia.com), buying was cheaper than renting in 74% of the country’s 50 largest cities in July. In just 12% of the cities, including New York, Seattle and San Francisco, renting was cheaper. In the remaining 14% of cities, renting was less expensive but close to the cost of buying. When it comes to the Tri-County area (Pittsburg, Antioch & Brentwood), I highly recommend PURCHASING a home versus renting a home. I just makes sense financially.
In addition to a continuing decline in home prices in the bay area, ROCK BOTTOM INTEREST RATES have added fuel to the home buying fire. The overnight average rate for a 30-year fixed was just 4.19%. A 15-year fixed averaged just 3.43%. Not only are rates low, but the tax perks you get with owning a home out weighs the benefits of renting one.
If you have a steady job and you are planning to stay in that home for seven years or more and have enough cash to put 3.5% down for a FHA loan and enough left over for seven or eight months of expenses, you’re better off buying. It just makes sense.
If you’re in the market for a home or if you’re in selling your home, I will be more then happy to address any questions or concerns you may have.
Shantell Owens
925-594-0321: Direct
Related articles
- Top US cities where it’s cheaper to rent than buy (bizjournals.com)
- U.S. home prices dip (business.financialpost.com)
