No doubt you have heard this debate countless times, especially in the last few years. That would be because it has never been a more relevant question. The price of buying verses renting has not just gotten closer, it has now become more economical to buy in most markets.
If you follow this blog regularly you have heard it here many times also. But you might expect that since we are in the real estate business. While we do property management also, our primary interests are in helping people buy and sell homes.
So, yes, we might be a little biased in our opinions so we try very hard not to let those opinions into our reports without clearly stating them as such. It is important to us that we have your confidence that we report only facts.
Today CNN MONEY published its findings stating the same fact. In most markets (Honolulu being the biggest exception) buying is more economical than renting. You can read that article here $.
In our area, with a minimal down, you can purchase a home that will rent for 2 to 3 times your monthly payment! That is from day one! No investing in the property for 3-5 years before you see profit; you can have a positive cash flow from the day you put your renter in.
Two major contributing factors to this are the low prices for homes today caused in part by the economic downturn, and the phenomenally low interest rates available. A third factor is creating this perfect situation. That is the glut of renters; families that might have been buyers (or were) but have been forced back by the economic situation.
As you might expect all of these factors will vanish. As they do, so does this great opportunity. As the foreclosures are sold the inventory reduces, driving prices up. When the market shows significant signs of life the interest rates will begin to rise back to a sustainable rate. As the economy improves renters will become buyers once again. And in a few months those that were forced out of their homes will be able to buy again.
How does this effect you? Do you have questions about YOUR best action? Contact us today for your free, no obligation consultation.
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