Profile picture for soomar

is it better to rent or buy in Cleveland, Ohio. I am first time home buyer.

I amalso interested in knowing what neighborhoods are good for buying..? I am looking for a good house at least (3bdr , 2 bath) with rsmall yard . 
  • August 15 2010 - Cleveland
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Answers (24)

Great time to buy with the low interest rates.  Talk to a lender about the programs available for first time home buyers and the different financing options available. 
  • August 26 2014
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Profile picture for the_country_hick
Interest rates are low so buy now?

Do you realize that going from 5% to 7% mortgage rates removes 23.9% of buying power? That means your payment that could have bought a $200k house now only buys a $152k house. In that scenario how can house prices not fall as interest rates rise?

I would rather pay more for interest. That way when I pay down my principle amount owed it drastically shortens  the length of the loan compared to paying off extra principle with a lower rate.
  • September 12 2010
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It is better to buy right now.  Interest rates are very low.  Cleveland area neighborhoods Shaker Heights, the Tangles are both older areas with good resale. 
Be sure to speak with a lender.  You may qualify for first time homebuyers interest rates.  FHA loans have very loan down payments. 

Have you been to Johnny's Restaurant yet?  The food is wonderful.  THere is one downtown but I always prefered the one over by the zoo.

Jo
 
  • September 12 2010
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Don't buy unless you plan to own it for at least 5 years. Your built up equity in less than 5 years will not be more than the transaction costs at sale. Also, you should first figure out where you want to live. If it is much much less expensive to rent in those areas than to buy, it probably makes sense to be a renter and let someone else deal with the typical property issues while you save for a long term hold on a house. 

Go to a lender and find out what you can afford and then see if that amount matches any areas you like. Hopefully it will and you can find a great property.
  • September 12 2010
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"In my personal experience it is alway better to buy than to rent.  Renting makes someone else rich."

Care to explain that to the millions of people who bought in 2006? Many of whom pay TWICE as much  each month as the home would rent for, and are upside down on their mortgage after losing their downpayment?

Unbelievable, simply unbelievable, if that is your experience, you have learned nothing from the past few years.
  • September 11 2010
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In my personal experience it is alway better to buy than to rent.  Renting makes someone else rich.  If you can pull off the down and closing costs, it really will be a good decision in the long run.  If you can't then do rent, but get yourself a good agent in your area and if you need a referral, ask a friend or let me know and I can set it up for you.....good luck!
  • September 11 2010
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Depends on the specific neighborhood(s) where you want to live and the rents vs. the cost of ownership. Figure out how much it costs to own - PITI, HOA fees, maintenance, yard, etc. and compare that to the cost of renting. If renting is much cheaper in the area where you want to live, stay a renter and save that extra money so you can buy a nicer property down the road.
  • September 10 2010
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it is better to buy right now, because the interest rates are so low,

Um, ok....that was from an agent in New York.

The real estate market varies from state to state, from city to city and from neighborhood to neighborhood.

Unless you have some crystal ball, I would advise agents that are not from Ohio to not chime in on questions of this nature.

I'm not picking on any specific agent. I just noticed this was a trend when someone from my area posted a similar question and they got they most screwball answers from agents far and wide. He would've been better asking his question to a Magic 8 Ball.

'Now is not the time to buy'

'Yes, but buy wisely'

'Try again'
  • September 09 2010
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Profile picture for dacolan
It is really embarrassing to Realtors as a profession, when someone asks a buy/rent question and all the answers are completely free of any actual analysis to support an opinion.

With the most common response from RE pros being, "it is a GREAT time to buy" and "interest rates are low" it makes one wonder how many REAs are even capable of any real meaningful insight, much less performing such an elementary analysis...
  • September 09 2010
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Profile picture for the_country_hick
Selling will probably cost you around 10% of the price you sell for.

You have to do any repairs the house needs and pay for them.

Amortization tables say it is about 7 years to just break even in a flat market.

Foreclosures and other factors like high unemployment, bad economy, and tight lending standards are likely to bring house prices even lower.

Consider the blogs in the links below. This gives you a more personalized way to look at this question.
"Does it make more sense to buy, or to rent? Here is the way to find out for sure."

"Why rent if you could buy for less money? Valid reasons inside."
  • September 08 2010
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It is a GREAT time to buy.  Home prices and interest rates are great right now.  You could buy a $100,000 house for about $750 a month.  Probably about the same amount for a 2 bedroom apartment.  Depending on the area you are looking into you could most certainly find a good home with 3 bedrooms and 2 baths at a decent price.

Contact me at [contact info removed by moderator due to self-promotion] so I can get a better idea of what you are looking for and what areas you are interested in.  I would gladly help you find your first home.

Sheila Bradford
REALTOR
Howard Hanna Real Estate Services
  • September 08 2010
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Profile picture for sunnyview
The NY Times has a really good rent vs buy calculator here that can help you run numbers. Of course, numbers aren't everything, but they are a good piece to help decide what is right for your goals. Hope the link helps.
  • September 08 2010
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it is better to buy right now, because the intrest rates are so low,
  • September 08 2010
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Each market is wildly different but a constant right now are cheap interest rates and decreased sales prices. If I were you looking for a property to buy or rent, look at the amount the same property would cost to rent as opposed to buying. If the payments are reasonably close, buying right now is a good idea, otherwise bide your time and wait. Owning a home is ultimatley a source of security, in the long run. Depending on what your future and immediate goals are, make sure you plan accordingly.
  • September 06 2010
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I have an idea:

How about some of you Cleveland agents do the very first minimal step towards answering this question?

Take a neighborhood, find what a 3/2 home would rent for.
Using the same area, find what similar sized 3/2 homes sell for.
estimate the payment on the mortgage, 20% down 30 yr fixed, with average taxes and insurance.

Then compare the price to rent...

It is really embarrassing to Realtors as a profession, when someone asks a buy/rent question and all the answers are completely free of any actual analysis to support an opinion.
  • September 06 2010
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Frist time home buyer can work some really good deals the intrest rates and that this is a buyers market. Shop around ask your local agents for tips. good Luck.

  • September 06 2010
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With the interest rates arount 4% it seems like a great time to buy and yes you should plan on living their for several years as there are closing costs involved in getting a mortgage. I don't necessarily agree that the prices are still going down, it really depends on the neighborhood. In some places the prices are starting to go up. Cleveland is a big area, so it is hard to recommend a neighborhood without knowing a little more about you. You can use a realtor for free. The seller pays both the listing agent and the buyer's agent, so you can feel comfortable using a realtor. We really are honest hardworking people here to help you get the best deal you can on a home. Go to some open houses and talk with the realtors, ask your friends and check out some profiles online and you will be sure to find a great realtor!
  • September 06 2010
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Profile picture for Frank Kaplan

You can find some great deals in the South Hills area.  It has immediate access to downtown (176) and a great community feel. We used to live in that area and in many ways are sad we left. 

  • August 18 2010
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If you Google "City of Cleveland tax abatement" a bunch of info comes up.  This is the most straight forward info I could find on the first seach page.

http://www.livecleveland.org/cityIncentives

I have it on my place in Tremont and I pay $147 a half. It was built in 2008, so anyone I sell it to also gets it tax abated until 2023. 

A realtor can send you a list of tax abated propertied in your search areas.

Hope this helps.
Paul
  • August 16 2010
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Profile picture for soomar
Hi all: Thanks for the good answers.
Tom : could you suggest agents in the Cleveland area ..? 

Paul: you mentioned " 15 year tax abatement for new construction(it is transferable, so you don't have to buy brand new).  It is a great way to get a $200,000 house with a $150,000 house payment " 
I do not know anything about that ; could you please refer me to some reading about that ..? 

Thanks

Soomar


 
  • August 16 2010
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Reasons to buy would be that you are planning not to move for 3-5 years, interest rates are still at all-time lows, tax benefits and prices are low vs. recent highs.

Reasons to rent would be that you plan on moving again soon, you don't qualify for a loan or you are afraid prices will go down substantially in your area within the next year.

Follow Tom's advice and have a local REALTOR or 3 do a buy vs rent comparison for you.  Then decide what to do and who to work with.
  • August 16 2010
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Profile picture for jal74

You should seriously be thinking about renting for at least the next two if not be in a mental place where you would think about renting for the next five years

Prices are going lower, not higher.  Better to rent while prices decrease than to own right now

Kind Regards

  • August 16 2010
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Hey Soomar,

    I agree with Tom on his approach to finding a realtor and buying vs. renting.  If you are acually looking in the City of Cleveland(Tremont, Ohio City, areas near down town, ect) than make sure to take advantage of the 15 year tax abatement for new construction(it is transferable, so you don't have to buy brand new).  It is a great way to get a $200,000 house with a $150,000 house payment. 

Hope this helps

Paul
  • August 16 2010
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Soomar, the very best thing that you can do is find a professional Realtor@ to represent you. A couple things I would tell you is to NOT sign a buyer's broker agreement with anyone. This is a form an agent will use to tie you up and ensure any transaction you make will only be through them. Find an agent who is happy to perform their services with the knowledge that if they do not properly meet your expectations they will lose your business. Second, NEVER call a listing agent about a home they have listed as their initial relationship with the seller will prevent you from working out the best deal. Finally, I would recommend that you interview at least three qualified agents in your area to assist you and select one who you feel will have your best interests as their primary goal. If you would like I can recommend agents in your area and help you along your path to finding the perfect home. It is a great time to buy!
  • August 15 2010
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