1. How long do you plan to stay put?
Renting has one major advantage over buying a home. Mobility. If you want to move across town, or around the country, simply pack up and go when your lease is up. Owning a home is not quite as simple. You will have to sell your home which can take time. If you are planning to live in the area for at least 3 years minimum, then buying a home may make more sense then renting.
If you are not sure if you like the area, have a need or desire to move soon, then buying a home is probably not a good idea. One thing to keep in mind as a home buyer is if you had too could you rent the home for more than your cost to own? This is a basic premise for any real estate investor. Buying something that does not cash flow does not make any sense. So if you buy a home in Bradenton for 150,000 a good estimate of your payment will be 1,100-1,300 a month. Right now, that price range home gets about that or more for an average rent.
2. How is your Credit?
Interest Rates are so low right now! I had a customer lock in a FHA home loan at 3.75% last week (Sept, 2011)!! That was for a 3.5% down, 30 year FIXED mortgage. Low interest There are three considerations if you are considering renting verse buying a home in bradenton, fl. ates translate to lower payments, and increase the amount of money you can qualify to borrow. If you are even slightly considering buying the very FIRST step is talking with a reputable,local lender.
I have many that I can recommend that can qualify you in as little as an hour. Once you know what you can afford, and it doesn’t make you fall out of your chair, it’s time to start shopping. If you qualify for a payment that feels uncomfortable, I would make sure to keep to a manageable number. Remember that as a home owner now you will have maintenance and repairs that can come up. Plus, you might want to upgrade those carpets, or paint those walls.
This home was bought by an investor to be rented sold for 180k rents for 1,900 a month
I had a customer call me this past week interested in getting a new rental home. They are a young couple that have never owned a home, and have been renting for their whole independant lives.
The property they like was snapped up the moment it hit the market. The rental market here in Bradenton and Lakewood Ranch is very, very fast! Rent prices have been steadily rising as well.
For example a single family home in Heritage harbour that 3 years ago rented for 900 now will get 1200 or more. They were going to need to have first, last, and security deposit, pet fee, background checks etc. They would need 4,100 dollar just to move into the rental. I was able to qualify them for a 150,000 loan for less than1,100 a month TOTAL PAYMENT. Plus they are able to move in to their brand new home with less than 1,700 dollar TOTAL OUT OF POCKET!! That’s 2,400 less than renting a home.
If you find out that your credit is not that great then you can at least know what needs to happen to improve so that you can qualify in the future. Credit scores are really important right now, and if you have great credit, and a stable income, qualifying for a loan shouldn’t be an issue.
3. Are you ready for the responsibilty of home ownership?
This home could be bought with 5,000 out of pocket, and have a payment less than $950 a month. It would rent for 1,600 a month
This question is not meant to insult anyone, but I too once rented an apartment. My situation was unique in that I had already owned a home before renting. It was nice to be able to just call down when there was an issue with something in the apartment. For me, after enjoying having my own home, and the privacy of no neighbors right next to me, and above me, and below, I was ready to buy another home in the Sarasota Bradenton area within a few months.
Buying a home is usually one of the largest purchases that someone makes in their life. Home ownership gives you a feeling of pride, stabality, and has the benefit of price appreciation too. Instead of paying someone else mortgage, you are paying off your own.
In conclusion, I think that if you are renting right now, and you have good credit, want to stay put for a few years at least, and are up for the challenges and joys of your own home this is the best time to buy.
Prices have dropped in the Sarasota Bradenton area to the prices that homes for sale back in 2000 and before. The entire real estate market is on sale. Interest rates are at all time lows as well. That makes what you can afford increase so you can get more home for your money. On top of that rental rates on investor owned homes in Sarasota and Bradenton have seen major increases in rental rates.
There is a lot of cash buyers out in our sarasota/bradenton real estate market that are snapping up all the good investment properties as quick as they come up. Maybe it’s time for you to jump in too.
If you are interested in getting pre qualified, and talking buying a home. Give me a call, we have upcoming first time home buyer workshops that we can give you information about. Call me anytime phone/text/email I am ready to help you! Joe Murphy Expert Real Estate agent for Sarasota and Bradenton
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