Should I Buy And Take Advantage Of The Great Values, Or Should I Rent?

Very often during a market that is in a state of flux, one sees that the rental market becomes more robust.  Which leads one to consider one’s options and ask:  Is it better to rent in this current market as opposed to buy?

One of the key elements driving many home owners is fear.  Our market has been hit not only economical, but psychologically.  It is impossible to ignore the after effects of our recent real estate collapse.  Especially since our real estate market’s tremendous upheaval has left tens of thousands of families in foreclosure.

Many buyers are a bit gun shy about the prospects of buying.  Add to that the fear of depreciating values, and then you have a scenario that reduces the amount of new buyers in a market.

However, there is an old saying concerning problems versus solutions:  The world is full of people pointing out the problems, but there are very few people providing solutions!

In a recent CNBC report, it was pointed out the many buyers are holding off of buying because they are saving for a down payment.  Though this may be true; it merely points out how many Realtors® and buyers aren’t utilizing the variety of down payment assistance programs.

 

 

In an era where our economy, our real estate industry, and all the peripheral businesses that depend on new buyers and home sales, it’s time to begin locating and implementing those mortgage professionals who have strong knowledge in and regularly finance buyers using down payment assistance programs.  This maneuver would substantially reduce, if not eliminate, the idea that a buyer can’t purchase now because they don’t have enough for their down payment.

As for renting being a better option than owning, in recent article featuring the subject of Renting Vs. Buying in the First Time Home Buyers 411 site, it clearly displayed that it was considerably more cost effective to buy versus rent.  The article took the average monthly rental amounts in the greater San Diego areas and compared that amount against the monthly mortgage payments in the Southwest Riverside County.  For essentially the same amount that someone would spend for a 1 or 2 bedroom apartment, one could own a 3 bedroom home with a yard.

Finally, the market conditions with ultimately adjust.  The fear of having one’s mortgage payment spiral out of control is easily solved with a fixed rate and fixed period loan.  Therefore, today’s buyer won’t face the same perils that buyers faced during the housing boom that collapsed in late 2006, early 2007.

 

 

From the desk of Claudio Gormaz, First Time Home Buyer Specialist, with GEM Mortgage

Direct:  951.294.2274, Fax: 951.220.6707; claudioalexis@verizon.net