Should I buy or rent in Newport beach?
With all the trouble in the market right now, I get asked all the time should I buy or rent in Newport Beach right now? My personal opinion is yes, what a great time to buy, if you can afford it. We have had record lows with interest rates, the prices on homes have come down significantly, and rents are only going up and continue to go up over the next five years at least! Take advantage of the foreclosures in Newport Beach and let the banks take the hit and let your wallet get fatter. There was a great study that was done by rismedia.com with some unexpected results. While you are reading these factors ask yourself, "should I buy or rent in Newport Beach", and see how you feel:
- Rising rents are forcing renters to outspend home owners on housing costs in Newport Beach, according to a new study.
- Since 2005, home owners housing expenses have climbed from 31.9 percent of their household budget to 33.2 percent in Newport Beach. On the other hand, in that same time period, renters expenses have jumped from 35.6 percent to 38.4 percent, according to the October CoreLogic U.S. Housing and Mortgage Trends.
- In the last 26 years, home owners have increased the amount they spend on household expenses by 12 percent while renters have increased it by 22 percent, according to the study.
- Earlier this month, Capital Economics economists noted that for the first time in 30 years the median monthly mortgage payment is about the same -- or less -- than the median rental payment in Newport Beach.
- Yet, with the bleak job market, home ownership rates continue to fall in many parts of the country, particularly among younger generations. CoreLogic found in its report that the home ownership rate for the 25-to-34 age group dropped from 51.6 percent in 1980 to 42 percent in 2010. For the 35-to-44 age group, home ownership rates fell from 71.2 percent to 62.3 percent over that period in Newport Beach.
Should I buy or rent in Newport Beach?
If you can afford to buy, take advantage of the Real Estate Market in Newport Beach. Surprisingly there are a lot of people coming out of the wood works with cash offers and buying up what they can in Newport Beach. In a time where all we hear in the media is how terrible things are and how can they get any worse, you start to wonder where all this cash is coming from! Sure there are a lot of investors coming from over sea's investing but there are a lot of American's doing the same here in Newport Beach. I think they went to the back yard and picked it off of their money trees.
With interests rates as low as they are (3.75%-4.25%) don't let this opportunity of owing in Newport Beach pass you by while you are standing on the sidelines and saying to yourself, "5 years ago I could have bought this place for $500,000 and now look at it, it is worth a million." Like so many others did in 2002. Call me or email me at email@example.com and see what you can afford in So Cal.
So ask yourself, "should I buy or rent in Newport Beach?"