Rent or Own? Now is the Time to Buy!!

Q. I’m thinking about purchasing a home. What should I know before buying?

A. If you’re thinking of investing in a house now or wondering whether you should wait, here are three important things to consider:

1. Renting vs. Buying. If you rent a home, it could cost you less each month...and you might have more money to invest in other endeavors. But if you put your money in a low-interest money market fund, generally you will not earn as much as if you had invested your money in a house. Now many home or condos will be less to buy than rent! When prices rise you will be far ahead, even more if rents continue to rise.

2. Housing Prices and Interest Rates. You may be waiting for the housing prices in your area to fall again. They may not. However, usually when they do, the interest rates will be higher. The amount you gain could be significantly less over the long-term cost of the mortgage. Therefore, waiting may not be in your best financial interest.

3. The Break-Even Point. The average break-even point for buying and selling a house is five to seven years. If you plan to move before then you may want to seek professional advice before purchasing property if you want to realize a profit on your investment.

If you are in the market for a buying or selling a home and need competent and caring representation, please call me at 206-226-0565.