First time home buyers is it the right time to buy in Canyon Lake?

First time home buyers in Canyon Lake Ca have to two choices when it comes to their housing needs, they can continue to rent and pay their landlord’s mortgage or they can take that giant step onto the path to homeownership.

That  “giant step” should not be taken without careful research. You should investigate the neighborhoods, the schools, the city amenities, traffic bottlenecks etc.

But once you’ve decided that owning your first home in Canyon Lake , fits your lifestyle, it’s time to analyze the investment side of your decision.

In a previous post I talked about the Rent Ratio tool I picked up from the New York Times.
Read the complete article
This tool is to help you compare the investment side of your decision by comparing the cost of renting with the cost of owning, like the price-to-earnings ratio that stock investors use.

To help first time home buyers in Canyon Lake, I’ve taken the average rental rate for a 3 bedroom home in Canyon Lake (from RentRange.com) and compared it with the average sale price of the same size home in Canyon Lake (figures from Trulia.com) and come up with the Rent Ratio for Canyon Lake.

• Read more about Canyon Lake Real Estate
  

Average rent: $1840 (1800 square feet)
Average Sale Price: $229,320
Canyon Lake Rent Ratio: 11.56

In concrete terms, a rent ratio above 20 means that the monthly costs of ownership will exceed the cost of renting. Anything less the pendulum starts to swing toward home ownership. Anything less than 10-14 is clearly a buying sign.

For most first time home buyers, it’s still about that payment or as we mortgage professionals like to call it: “your monthly nut”. Your “nut” in this case would be about $1695 a month including taxes and insurance.

(Payment is an estimate based on an FHA loan at 5%/5.2% APR for 30 years with minimum 3.5% down payment, including mortgage insurance, homeowners insurance and estimated property taxes at 1.65%, does not include Canyon Lake monthly property owners association fee)

• Compare to Temecula Rent Ratio
  

• Compare to Murrieta Rent Ratio
  

• Compare to Menifee Rent Ratio
  

To find a Canyon Lake First Time Home Buyer Specialist

other related posts:

• What is the real cost of waiting for first time home buyers?
  

• Why good credit is important for first time home buyers
  

• First time home buyer loans with no credit scores
  

• First Time Home Buyers 10 good reasons to buy now
  

• First Time Home Buyers – How to buy your first home
  

• First Time Home Buyers – should you buy a new home