Is it better to rent or to buy? This is a question that is asked frequently and the answer really depends on you and your situation and also your goals for your future.
Here are some questions you need to ask yourself: Do you think you’re ready to move into the world of homeownership in Montara? Does your job require you to relocate frequently? Are you ready to “settle down” and raise a family? Not sure what you want to do yet?
Buying a home has some real advantages. Right now buyers in Montara can cash in on hefty price drops and rock bottom mortgage interest rates. Many people just do not realize how great the market really is!
Here are a few pros and cons to buying and renting in Montara:
Buying Advantages:
* You gain equity in your home through mortgage payments.
* Your home could be one of the best long-term investments you will ever make.
* You can decorate and remodel the way you want.
* You get homeowner tax breaks.
* You build your credit standing.
* You can improve your property using home equity loans.
* You gain independence and pride as a homeowner.
* You can transfer your property through your will.
Buying Disadvantages:
* Your costs are variable.
* Your equity may change due to market conditions.
* You usually must sell your home to move.
* You handle maintenance and upkeep.
* You usually need more cash to get in.
Renting Advantages:
* Your costs are fixed for the term of your rental.
* You don’t lose equity.
* You can move at the end of your lease term.
* You have fewer maintenance worries.
* You need less cash to get in.
Renting Disadvantages:
* You never get equity.
* You can’t always decorate or remodel the way you want.
* You don’t get any tax breaks.
* Your lease is for a limited time period determined by your landlord.
* Your rent may go up at the end of your lease and other terms may change.
* Your landlord may not fix problems or invest in routine property maintenance.
* You normally can’t transfer your lease without the landlord’s OK.
* You may face eviction if you and your landlord have a dispute.
That’s a lot to think about. To put these pros and cons into dollar terms, try out this rent v. buy calculator offered by the Federal Home Loan Mortgage Insurance Corporation (better known as Freddie Mac). Don’t be shy–check out different scenarios and see what they mean for your finances.
There are certainly a lot of variables to consider when making this decision. You need to do your homework and decide what is right for you and your family. Working with a qualified real estate professional in Montara can provide current market advice for your area can help.
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We often talk about the COST of buying a coastal home vs. the PRICE of the home. The price obviously is a major component of the cost. The other major component is the interest rate on your mortgage. A small hike in mortgage interest rate can have a dramatic impact on your monthly payment. For that reason we try to keep you current on what is projected for rates in the future.
