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Is it Cheaper to Buy Now than to Rent?

By
Real Estate Agent with Signature Properties

Picture of LighthouseCheaper to Buy than Rent  Right Now?

With lower house prices on the Central Coast of California and at the same time, rising rental rates,  you may want to consider purchasing a home right now.  Did you know that a home purchased for $300,000  with a zero down payment results in a payment of only $1900 per month?  That includes property taxes and insurance!  And yes, you can buy a house with zero down payment.

 With the mortgage interest deduction still intact, your accountant will probably confirm that for many of you, a purchase similar to the one described above will result in approximately a $3600 tax savings!!  If you are renting now for $1600, that sounds to me like a break even situation. I hope this news will prompt many people to investigate the possibility of owning versus renting. 

 With homeownership, there are so many benefits if you are brave enough to take that first step.  For one thing, you won't be getting the dreaded phone call from the landlord that they have decided to sell the property and now you not only have to allow it to be shown to prospective buyers, but you will most likely have to move pretty soon. I find that most people are usually unprepared emotionally and many time financially, for this sudden turn of events. 

 In addition, historically prices go up regardless of what you are hearing all over the media today.  How many of us have heard a friend or neighbor tell us that they bought their house for $25,000 way back when and now even with the temporary decline in house prices, it is still worth $400,000?  I know that even I cringe when I hear those stories.  How do you become equity rich like your neighbor?  Take a step out in faith and experience the joy of owning your own home!  Paint the walls whatever color you want and live there until YOU choose to move.  Who cares what the current value is on the home if you're not going anywhere?

 If you would like advice on whether this is the right time for you to buy, call me at (805)710-2415 or send me an email at Nancy@SignatureProperties1.com Nancy Puder is the owner/broker of Signature Properties Real Estate Sales & Property Management, located at 124 S. Halcyon Rd., Arroyo Grande, CA 93420www.SignatureProperties1.com

Pat Laracy Baker
Realty Executives Boston West - Holliston, MA
Pat Baker Dream Home Maker

Nancy It is always best to buy over rent.  I love the tax savings.  For the entrepreneur who works  from home there are even more tax advantages too.    The best investment we make in like if the purchase of a home.  We paid $32,500 in 1971 and our home is $575,000 even in this market.  I would say we made a great decision to buy way back then.  I don't think we thought we would still be here.

Feb 12, 2011 01:53 AM
Nancy Puder
Signature Properties - Arroyo Grande, CA

Great testimony! Are you staying warm in Massachusetts?  One of my favorite clients just moved here from there!  They are really enjoying our 72 degree weather right now!  Always great to connect with a pro!  Nancy

Feb 12, 2011 01:56 AM