Tuesday, May 23, 2006

Buying vs. Renting

Over the last few years the rental market has been great for renters. There have been plenty of available units and even incentives including things like free rent. I even heard stories about landlords that reduced the rent so tenants won’t leave. It was great. It seems like those days have come to an end with a huge drops in vacancy rates. Landlords are increasing their rents as much as 10%. And remember the increases don’t stop after the first year. I know buying your first home can be a daunting process, but given the number of great properties that are on the market and still so low (at 6.2% for a 30 yr fixed at time of publication) it’s something worth seriously considering.

A couple benefits to buying vs. renting….
* Your payments will not increase on a fixed mortgage, but more than likely your
income will
* No one can tell you that you can’t paint your walls whatever color you want even if it’s
avocado green
* You’re now eligible for property tax credit, never a bad thing
* It’s yours all yours
* You’ll build equity in your new home that you’ll be able to use in the future
* It’s a stepping-stone to your dream home