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Should You Rent?

By
Real Estate Agent with Rancon Real Estate

Two story homeToday on the front page of MSN is an article suggesting that this might be a good time to rent. Well, yes and no! Luckily with today's market, buyers can actually have enough inventory to make their own choices on the best home for them. No more of the looking at the only three homes available in your price point and "have to write it today, because it won't be here, if you wait"---no more of buying in the only available neighborhood, instead of the area that you wanted! You can actually chose and "think" before you sign on the dotted line.

That sounds pretty reasonable to me. Buyers in the higher price ranges have generally had those options, but first time buyers haven't had that luxury in a long time.

A client just asked me if I thought they should just rent awhile-----Well, they are pretty specific buyers. They only want one area, has to be a least an acre (mostly tract homes around that area), has to be a specific size. I'm not sure they should pass on something that is a good fit for them because there will never be many homes that will fit their requirements.

I agree that first time home buyers don't have the pressure to buy immediately but still they need to get in now as the prices are lower. I have lots of mixed feelings----What is your feelings on this?

Comments(4)

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Abraham Chaffin
Sand Shell Realty - Cambria, CA
Cambria Real Estate

IMHO - Real Estate is a great investment - property prices will continue to go up over the long haul. Though short term investing in any market is never certain, real estate property will always be valuable.

Renting, though less than a mortgage payment, is money that you will never get back and never see a return on. 

May 06, 2007 08:13 PM
Marlene Bridges
Village Real Estate Services, Inc. - Laguna Hills, CA
Laguna Homes|Laguna Condos|Laguna Real Estate
Hi Sandra-Great question.  It just has never made economic sense to me to rent vs. buy.  Over time, buying a personal residence will always pencil out better than renting.  Sadly, many people rent in the new luxury, resort-type complexes.  When it comes time to look at homes they can actually afford because they threw away so much money on rent, they don't like what they can afford.
May 06, 2007 09:00 PM
Alexander Harb
Knights Investing - Mesquite, TX
Dallas, Texas Real Estate Investing

Lease with an option to buy YES...rent...NO!!!

hehehehe..there is ALWAYS a way to get it done!!

=-D

May 06, 2007 10:00 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Rent prices are rising dramatically here ~ $158 average from Jan 1-Mar 30!  There is almost zero disparity between renting an entry level SFR and buying one as far as payments and tax advantages go.

Great great topic! 

May 07, 2007 02:45 AM