Despite rising 30-year fixed rates back above the 5% mark, calculations have shown that purchasing a home and selling it remains cheaper than simply renting it, regardless of the time you intend to stay in possession of the property. Rents are rising rapidly nationwide with a 14% average increase comparing to last year. For some cities, the rental listings are 30% to 40% higher.
It’s important to establish the pros and cons in renting or buying. Renting a home seems to be convenient. If things break, the landlord fixes them. You also dodge real estate taxes and HOA dues. They both require a hard pull of your credit score. Many argue that no down payment is required in renting a home. In some cases, down payment assistance programs are available for first time homebuyers which will help you to get into the first home. Purchasing has the advantage as it will often appreciate over time, and your mortgage interest payment could be deductible (confirm with your tax preparer). Owing a home will make it part of your assets which you can have access to in the future.
If you are concerned whether you can qualify for a mortgage, contact me today at 925-216-3618 to find out what will take to become a homeowner.
