Buying vs. Renting In Today's Market

When evaluating your particular circumstances, you may be faced with the decision of whether you should buy or rent a home. With all the bad news circulating about changes in the real estate market over the past year, many are hesitant to take any steps toward buying a home; however, there are two sides to every story.

For those looking to buy, you may or may not have already heard about certain government incentives that have been established to assist you in making your purchase. For example, there is an $8,000 tax credit offered to first time home buyers put in place by the federal government. In addition, certain states and cities may have their own programs in place that give additional rebates, discounts or incentives when purchasing a home in their municipality.

Recently revised Fannie Mae underwriting guidelines help potential homebuyers by taking careful consideration to the quality and value of a property before writing a loan, which helps ensure the home you are looking to buy is worth its asking price.

Interest rates are at historic lows, which can save you hundreds of dollars per month over what you could have paid a few years ago for a property of equal price. If you opt to go with a fixed rate loan, your mortgage will stay the same for the life of your loan as opposed to renting a property from a landlord or management company who makes it a habit of raising the rent each year.

If the time ever comes for you to sell your home in the future, there is a capital gains tax exemption that can save you thousands of dollars in taxes if you sell in the timeframe which you would otherwise have to pay full capital gains tax. Because the housing market is currently in a slump, you have a very high probability of selling your home in the future for more than you paid for it, allowing you to make a profit on your home purchase.

If you find yourself in financially capable of purchasing your own home, a countless number of properties can be found at prices not seen in decades. Foreclosures seen all over the country have driven home prices down that make it possible in many cases to pay a mortgage on your own home for less than what you would be paying for rent.

It is important; however, to be sure you are ready to meet the financial needs of owning a home. If you have grown accustomed to renting, it is easy to overlook some of the unpredictable costs that may arise in the future due to repairs and maintenance. The last thing you want to do is to find yourself on the bad end of home foreclosures by not being able to pay your mortgage and thereby losing your home and severely damaging your credit.

If you are faced with the possibility of being laid off from your job or are already struggling to pay your rent in about the same amount as your mortgage would cost you, purchasing a home at this point in time may not be a good idea for you. You can start planning for the future now by budgeting your money wisely and incorporating a regular savings plan so that you will be in a better financial position in the future to take on the responsibility of purchasing and owning your own home.

Condo.com has a created a network of licensed real estate professionals that are capable of providing full service brokerage services.  Whether you are thinking about buying, selling or renting a condominium trust the professionals at Condo.com to service your real estate needs.  We are the condominium experts!  Condo.com will provide you with the level of expertise and service you desire…the very best!  If you need immediate assistance please call 305-476-2060 to speak with one of our live condo specialists today.