5 Reasons Buying a Home Beats Renting

Reblogger Cristina Salcedo
Real Estate Agent with REMAX Champions 01372645
https://activerain.com/droplet/dMs

 

5 Reason Buying a Home Beats Renting was written for the Colorado Springs Market but it really applies to our local market (Orange County, Riverside County, CA) as well.  The break down of renting vs owning your home is beautifully illustraded and should be read by anyone that is still renting.

 

 

Original content by Rebekah Radice

buy vs rent a home in colorado springsThe Colorado Springs housing market and across the country has taken a beating over the last several years. There’s no doubt about that or the impact social media has played in spreading the negative news surrounding the economy and battered housing market.

Thanks to Facebook and Twitter, what used to be the local news station is now a viral sensation when video highlighting their shocking foreclosure numbers hit their social networks. Within minutes the video makes its way into every corner of the country. No longer is our news just about the local Colorado Springs market; it’s about the housing crash and the associated horror stories across America.

Social media has stimulated the debate: Is there still such a thing as the “American dream” and is now really a good time to buy?

Should I Buy a Home Now?

According to the National Association of Realtors, 8 out of 10 people still say now is the time to buy a home. This means that despite the barrage of bad economic news, Americans are still optimistic about the housing market.

So the question has to be asked - with interest rates still at record lows and an abundance of homes on the market, why aren’t buyers knocking down our doors? (No pun intended of course) As real estate and mortgage professionals, it’s our job to help 1st Time Home buyers understand the benefits of buying a home vs. renting.

Why Buying a Home Just Makes Sense

1. Great Rates + Low Prices = A GREAT Deal for You!

With interest rates hovering around 4.5%, the cost to buy a home in Colorado Springs is cheaper than it’s ever been. Let’s look at how the monthly costs break down (approximately) for an assessment of how renting stacks up against purchasing a 3 bedroom, 2 bath home:

Renting Buying
Rent: $1,395 Principal, Interest, PMI: $900
Renters Insurance: $25 Homeowners Insurance: $80
Property Taxes: $0 Property Taxes: $125
Total: $1420 Total: $1105

The unfortunate news is that if inflation picks up, you won't see mortgage rates this low again.

2. The Freedom to Be YOU

When you rent a home, you typically don’t have the luxury to make changes or improvements to the home. If you are able to update the house, you will be required to ask the owner for permission. So living in a home that looks and feels like you is out of the question.

It makes no sense to spend thousands of dollars painting, putting in carpet, tile or window coverings when you won’t be the one benefiting. When you own a home you now have the freedom to make improvements and turn it into the dream home you have been waiting for.

The best part is that all of the equity built in that home is now yours!

3. Consistent Monthly Housing Payments

We are currently seeing an escalation in rent cost throughout Colorado Springs and you can expect that to continue.When you rent a home, you have no control over the increase to that monthly payment unless you are willing to pick up and move each time it happens.

When you own a home, you have the option to choose a low fixed interest rate which offers the same monthly payment year after year. You are able to live without the worry of a rent increase or the possibility that you can no longer afford the home you are living in.

Even if you choose an adjustable rate mortgage, your payment will remain the same for a fixed period of time. Typically this ranges between 1 and 10 years.

Think about what the cost to rent a home will be in 10 years. I can’t imagine how many price increases you would see over that time and the tens of thousands of dollars you will put in someone else’s pocket.

Does it make sense to continue throwing that money away each month?

4. Forces You to Save Money

Buying a home is like putting your money in a piggy bank. You automatically begin saving money from the moment you start making payments.

Here’s how it works: As you make your payment, a portion of that goes toward your principal balance. It may start out small at the beginning, but becomes a significant amount over the life of your loan.

Your house is also going to appreciate over time. This appreciation is known as equity and turns into cash when you sell or refinance that home. Owning a home is still one of the best financial investments you can make.

5. More Room to Grow

Are you tired of cranky kids because they can’t go outdoors to play or restless dogs that wish they had a backyard to run in?

Buying a home of your own gives you more room to enjoy life both indoors and outdoors. Plus, if you are in an apartment now, think of the money you will save in laundry alone!

When you rent an apartment, the idea behind their design is how to fit as many people into a small cramped space as possible. A much distant second would be their concern over your comfort or lifestyle.

As first time home buyers, moving to your new home will give you the freedom and space to live your life to its fullest. In fact, you might be so excited about all the room you have, you might have to buy more stuff to fill it!

Contact our team at 719.387.1368 and find out how you can start on the path to home ownership today!

Buy Your Colorado Springs, CO Home Today! 

 

 

5 Reasons Buying a Home Beats Renting was written by Rebekah Radice.

 

 

 


Subscribe to Rebekah's Rockstar Blog!

 

Want to know more about me?  Just Google Me! 

T: 719.387.1368 | Email: rebekah@rebekahradice.com | Website: http://rebekahradice.com |CO & NMLS Licensee: LMB100010938 & 288596 | Benchmark Mortgage dba Ark-La-Tek Financial Services, LLC | 12 E. Kiowa |Colorado Springs, CO 80903

 

FREE Marketing, Sales & Success Strategies for Colorado Real Estate Agents:

Free Help for Colorado Real Estate Agents


Find Me Online!

Rebekah Radice FacebookRebekah Radice TwitterRebekah Radice LinkedinRebekah Radice Blog

Recent Articles from Rebekah's Blog

You Can Be a Referral Magnet

6 Ways to Drive Traffic to Your Website or Blog

How to Use LinkedIn to Generate Real Estate Business

What Happened to My Loan Approval

Top 5 Reasons You Should Blog on Active Rain


 

close

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Topic:
Home Improvement
Location:
California Orange County
Groups:
Realtors®
Addicted to Active Rain
Tags:
buying a home
purchasing a home
owning a home
mortgage payment
should i buy a home
why by a home
my own home

Spam prevention
Show All Comments
Rainer
44,880
Tom Meyer
Exit Advantage Realty - Dallas, TX

Cristina,

I agree great reasons.  I think buyers should base their buying power on one income not both, as history shows layoff occur, health leaving just one income to pay the bills.  Not good to be house poor. I am seeing a new financing animal a lot of "Owner Financing" but they still have a mortgage.

Jul 09, 2011 11:18 PM #1
Rainmaker
4,432,941
Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I agree with the above comment. I always worry when young people look for homes that they should not be buying. i always tell them that they may qualify for the mortgage but they should worry about unexpected expenses.

Jul 09, 2011 11:24 PM #2
Ambassador
4,762,266
Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

Strong and wise advice for any market and any time Christina, I encourage my renters to become owners often.

bob

Aug 16, 2016 03:18 PM #3
Show All Comments

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?

Rainer
127,361

Cristina Salcedo

Corona, Riverside Realtor
Ask me how to get a Free appraisal
*
*
*
*

Additional Information