Deciding Whether to Buy or Rent a Los Angeles Home, Consider These Facts

Deciding Whether to Buy or Rent a Los Angeles Home, Weight These Facts, Should you Buy or Rent a Los Angeles Home?Here’s a recent headline that will catch the eye of anyone interested in real estate, a potential homebuyer, renters, and mortgage lenders or real estate agents
Trying to Decide Between Renting & Buying a Home?
Here’s Some Facts, Info, & Suggestions to Consider …

“Study: 26% of Renters spend over HALF of their income on housing”.
This headline, from www.calculatedriskblog.com sure got my attention. There were a few other astounding pieces of new information contained within this post that about made my head spin too. Maybe the most amazing was this …
This is the highest level reported in half a century.

Totally amazing. And how about this? From Inman News on April 26th, 2011 …

“Rental listing prices nationwide jumped 7.4% in the last year while for-sale listing prices dropped 8.8% … according to a report from HotPads, a property search site”.

Other recent articles online and in print have also suggested that rental vacancies are becoming increasingly harder to come by in many metropolitan areas. That has caused an upheaval in rental prices within those cities.

With new construction, both residential and commercial, being currently lackluster, no one is predicting an increase in the number of rental units newly available to the rental market anytime soon either.

Gene Mundt Chicago Bancorp Buying a Home VS Renting blog post

So I ask you … If the above information was a math equation … what would the answer be?

I suppose the answer could be determined by the math equation YOU find within this information. But for me? The

I say if all things are equal … if the out of pocket cost to rent is the same as a mortgage payment for your own home … why would you not at least check-out the possibility of owning?

Now that being said, it’s clear that the comparisons being made DO have to be equal and precisely the same. The apples being compared to apples thing. And I’m not promoting purchasing a home across the board. No … home ownership is not for everyone. Not always possible. Not always the right thing to do

But what I’m advocating is thisdo your own math. Do your own homework. Roll up your sleeves and do a little investigating work. Dig around on the internet. Ask the hard questions regarding your local housing market. Make the calls. Grill the real estate professionals in your area.

Here’s something else to consider. The housing sale statistics for March 2011 showed that all-cash purchases (mostly investment purchases) made up a record 35% of sales. That is a HUGE clue as to what investors think will make them some money … and the wisdom of buying a home in this current market. Something for potential home buyers to think over too. If it makes sense for the investors ..

So now you’ve read this post. You’ve seen the information and have some facts and statistics to think over. What are you going to do?

Finding out if YOU are personally capable of buying a home is the first crucial step in your investigation. The mortgage financing of your home is where you must begin … and end … any home purchase or transaction.

Making the important decision to Buy a Home -vs- Renting has never been more critically hinged on your individual and personal financial scenario. Not your best friends. Not your parents. Not your co-workers. YOURS.


 

 

 

 

 

Originally posted at: http://www.genemundt.com/blog/2011/04/29/Trying-to-Decide-Between-Renting-Buying-a-Home-Heres-Some-Facts-Info-Suggestions-to-Consider-.aspx

Gene Mundt

I am a 30+ year veteran of the mortgage/banking industry, with extensive knowledge and experience in mortgage and credit services, management, and real estate appraising. I am also an IL Certified Financial Planner. This unique combination of education, experience, and expertise affords me more complete and in-depth resources from which to service my clients and their needs.

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Comments

  1. Jane – Great contribution by Gene.

  2. Thank you.

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