Back HomeShould You Buy or Rent?
Buying your first home is a major step. There is a lot you need to know to make the right decisions – and to avoid making the wrong ones. The good news is Royce Kemp is a highly-experienced REALTOR® who can guide you through buying a great home at a great price.
Owning Vs. Renting
Without question, owning a home comes with responsibilities and risks that you do not have to worry about when you rent, such as a mortgage, taxes, homeowner’s insurance, maintenance and repairs, to name a few. However, financial advisers – not to mention homeowners themselves – say there are far more advantages to owning:
- Historically, it has trended that over time, you will lose money by renting instead of owning your own home. Why not build up equity in a home instead of paying your landlord’s mortgage?
- Although there are periodic market drops, historically owning a home has been a prime financial investment.
- You can take advantage of many ongoing tax benefits, like deducting the interest on your mortgage and property taxes from your income tax.
- Owning a home is not just a good investment in financial terms, it’s also an investment in a higher quality of life – particularly if you have a family or if you’re e planing one.
- There is a special kind of pride in the ownership and upkeep of a home that you won’t get with renting.
At the end of the day, it just feels good to own your own home. You can decorate it any way you like, renovate or build additions, personalize your landscaping, and ultimately call it your own.
Do You Qualify To Own?
There is only one way to find out: go to your bank and/or another lending institution and allow them to perform a credit check and analyze your financial situation generally. You might be surprised, because the pity is that there are many renters who financially qualify to own their own homes, but don’t realize it. Are you in this category? It would be a shame if you wanted to own your own home , but didn’t know you could qualify to buy – particularly in San Diego where it is so expensive to rent already.
Also, keep in mind that you may be eligible for loans insured by the Veterans Administration (VA) or the Federal Housing Administration (FHA) to buy your home as well. These programs are great when not having the initial down payment is holding you back.
Is It A Good Time To Buy?
Generally speaking, if you’re financially qualified, your timing couldn’t be better. In fact, few markets have ever offered the kinds of opportunities that currently exist for first-time home-buyers, because:
- Home prices are still on the rebound
- Mortgage rates are historically low. You might be able to lock-in at a very low rate on a 30-year mortgage!
- There is an increasing listing inventory – i.e. increasing number of homes to choose from
- There are still some foreclosed homes and distress sale listings available at greatly reduced prices
- There are is a resurgence of new construction – i.e. brand new homes to offer new housing options
So the bottom line is that if you are currently renting but really want to own a home, this is a fantastic time to buy. And again, you may qualify to buy and not know it. So talk to a knowledgeable, experienced REALTOR® about your options. Your REALTOR® will not only be able to guide you towards getting all the financial support you qualify for, but you’ll also get the scoop on the many and various great real estate opportunities currently available.
Not only that, but in case you didn’t know, all the work that a REALTOR® does to help you find, finance and purchase a home won’t cost you a penny – it’s all paid for by the seller!
