Buyers are making big decision in today’s real estate market…“To rent or to buy”

Buying a home in Victorville to live in, instead of renting, can make a lot of sense when you plan on staying for awhile and the payments are within your budget.

That age old question “to rent or to buy” is a question most buyers will have before they start the home buying process.  Beyond this first question there are other factors, such as length of time you will be at this location, job stability and lifestyle.  If you intend on being in the area for at least two years or more, your job and income are dependable and purchasing a home fits your lifestyle then it might be time to break out a pen, paper and a calculator and see if buying makes more sense financially than renting.

At first buying a home looks more sensible than renting because of the potential of equity gain.  While the past few years have shown this factor to be a bit shaky, the reality is that if you keep a property long enough, or get in at the right time, buying real estate can be a worthy investment.  Keep in mind you have to have somewhere to live and a least when you own a portion of your payment each month goes to paying of the real estate loan.

There is no sense making a two column list when it comes out to equating the cost of renting and buying.  Renting is a fixed equation; the monthly number typically doesn’t change.  To compute your costs for buying a home you look at the following:

• Purchase price
• Down payment amount
• Loan Amount
• Loan Term
• Interest rate
• Property taxes
• HOA fees
• Monthly mortgage payment
• Home owner’s insurance
• mortgage insurance

Your monthly costs will include your mortgage payment, property taxes, insurance, and any HOA dues that may exist.  If these numbers add up to an amount you can afford it could make sense for you to purchase a home instead of rent.  The important thing to remember is that once you buy a home you are not going to have a landlord to rely on to make repairs so factor in putting aside some extra money for a home repair and maintenance account.

Buying a home is an important decision and one which can add to future security and financial stability if done with great thought and evaluation.

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