It’s important for the Taylor Stucki Realty Group to help people realize their dreams of home ownership. However, no matter how hard you try, some people are still gun shy about jumping into the market and buying a home.
With mortgage rates still near historic lows, but home prices and values on the rise – up a national average of 10% over the past year – should you buy now or continue renting?
While this question is better understood when you take into account where you live and how long you plan on sticking around; Zillow (the online real estate database) has crunched the numbers and determined that in most major markets it still makes better financial sense to buy.
Svenja Gudell, a senior economist with Zillow, points out that “in roughly 60 percent of the metropolitan areas we analyzed in our “Break Even” study, you can break even in less than 3 years!” He’s talking about all possible costs associated with both buying and renting as well as other factors. Because you build equity and credit through on time payments, you can recoup the money you come up with when your purchase a home in roughly three years time. In some markets, even sooner. However, when you rent, all those deposits and other fees are often non-refundable. And you don’t get those back.
In order to understand how your home pays for itself, you have to consider it a long term investment. We’ll talk more about that in a future article. But it helps to view it as such because you know ultimately, you’re earning your money back.
Of course there are markets like Boston, San Jose and New York where renting is just smarter. It can take a minimum of 5 years to see your investment pay off!
Fortunately for all of us, St. George is a market where you can recoup quickly. In fact, in most instances, you can buy for a lower monthly payment than rent! A recent buyer lowered his monthly payment from $900 to $575! And lives in a better home than the one he was renting!
If you’re sitting on the sidelines because you’re unsure of where you stand in the credit market, contacting us is a great way to get the ball rolling. You may be surprised at how much you can actually qualify for. And wouldn’t it be nice to find yourself owning that home instead of paying someone else’s mortgage every month?
Now’s the time, call today. And let us help you move into your dream home this summer!