Buying vs Renting

Buying vs Renting

Many renters ask, “Is now the time to buy a home?” It all depends on the current market, however now is the best time as home prices are expected to rise!

Check out Buying vs Renting Trulia to compare the average monthly payment of buying and renting depending on the area!

The first quarter of 2015 existing home prices have rose. Regional statistics show that in the West prices have rose 8 percent. This is good news for current homeowners, but could be disconcerting for buyers looking for homes.The interest rates are still low, rise slightly each month of 2015 and are expected to keep rising. Home prices may also continue to rise becoming an issue for buyers later on. Therefore, if you’re a seeking buyer who can afford now! Don’t wait any longer to purchase a home! Start searching now!

Why are renters still renting instead of buying?

In California, there are many reasons people decide to rent instead of buy. Many renters have finished college and are in debt with student loans. Last year, a student loan debt for students was an average of up to $30,000 in California. This means students who graduate are least likely to buy a home because they are unable to save up the necessary down payment due to paying off their loans. So what do we suggest to those individuals seeking to buy a home? – If you are renting, look for an affordable monthly payment that will allow you to save to eventually buy a home in the near future. According to the National Association of Realtors, more buyers previously lived with their parents to save money.  

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Other renters are looking outside city limits where prices are more affordable. However, don’t realize they are spending more or about the same on rent compared to a home mortgage. Renters are paying more on rent where they could actually be saving a few hundreds monthly which eventually adds up.  The average monthly rent ranges from $800-$1500 depending on location.

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The top 5 reasons for buying : the highest percentage is people get tired of renting. There are disadvantages in being a home renter, as you have instability, no equity, regulations and no financial incentives.

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Is buying more economically beneficial than renting? According to Realtytrac, “first quarter of 2015 shows that the monthly payment on a median-priced home is more affordable than the monthly fair market rent on a three-bedroom property in 76 percent of the U.S.” So the answer is yes! It is more economically beneficial to buy than rent in California as your home not only saves you monthly compared to renting but also becomes an investment over a period of time!