With all the data flying around and of your friends telling you it in NOT a good time to buy a home- take a 2nd look. Here are some simple facts for you to consider.
1) Interest Rates are at amazingly low rates. Last week there where some that actually registered in the low 3%. Yes- that is correct - around 3.5%. These rates are for those of you who will be selling there home in 5 years or less.
2) Home Prices remain low. People who do not own - seem to act in the opposite way they should when prices are low. For some reason many people run away from homes when prices are low. When in - FACT - you should buy LOW!
This applies to groceries, cars, clothes, food, and most all consumable items. Why pay more for something when you can get it for less.
Another thing to consider is your actual RENT. Here is a simple way to figure if you should BUY or RENT.
Take your monthly rent and multiply it times 12 (full year) Got it? Keep that number - write it down.
You should seriously consider BUYING a home and not renting if you can buy or own a home that is 20 or less times the cost of your yearly rent.
Here is how it works. Let's say you are renting a small apartment in South Orange County and pay around $2000 a month.
Multiply that times 12 and you get $24,000. This is your yearly cost to rent (throw your money to your landlord)
Now - to figure if buying a home in your area is do-able let's see what we come up with if we multiply that $24,000 x 20 = $480,000.
Can you buy a home in South OC of for under $480,000? YES YOU CAN!
Let's take a higher rent - let's say you pay $4,000 in rent each month x 12 = $48,000 x 20 = $960,000.
Can you buy a nice home that is 3-4 bedrooms for $960,000 a year? YES YOU CAN! YOU CAN BUY A BRAND NEW HOME FOR THIS PRICE.
Keep in mind this is used as a simple example of affordability. YOU SHOULD ALWAYS SPEAK TO/CONSULT YOUR FINANCIAL PEOPLE before you decide to buy a home.
You will see this idea in other places where some people suggest a factor of 15 - but in most cases they do not account for the actual selling price of a home.
Most people buy the home in today's market anywhere from 5% to 30% less than the listing price.
The idea is --as long as the home is a factor of 20 or less - it could be a great buy!
But remember - you also get TAX write-offs each year and tax deductions you DO NOT GET WITH RENTING.
With all the options out there to own your own home - TODAY is the day to start thinking seriously about your future. Want more? I can help you.
If you need to find out how much you can really afford in a home - let's get together and sit down with a expert and figure out exactly where you stand.
NOTHING gives you as much pride and walking through your OWN FRONT DOOR of the HOME YOU OWN.
Ken Webb - Realtor/Agent
OCAR, NAR, CAR
F1RST TEAM Real Estate
Email: kenwebb@me.com
Phone/Text: (949) 243-6649
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