Answers (10)
- Jason LaFlesch, "AZ Investment Link"
- Contributions:317
If you can't qualify for a loan to purchase a home, it is a great market to Rent. If you can qualify for a loan, then it's of course a Fantastic time to buy! This is one of those rare situations where both options are viable.
With interest rates as low as they currently are, it would be foolish not to take advantage of homeownership. Not only interest rates being at ALL TIME LOWS, but prices of homes are very reasonable as well.
Good luck and make it happen!
Jason
With interest rates as low as they currently are, it would be foolish not to take advantage of homeownership. Not only interest rates being at ALL TIME LOWS, but prices of homes are very reasonable as well.
Good luck and make it happen!
Jason
- Jeff Fisher, "ArizonasRealty"
- Contributions:7
CNN Money had a great article on 12 cities where to buy vs rent.
The Phoenix market was a BUY market vs renting. San Francisco was a RENT market.
Many houses bought during the bubble were financed with low down mortgages, which defaulted in extremely high numbers. The Phoenix metro area had one of the 10 highest foreclosure rates in the nation. So.... this had left a glut of homes on the market, most of those prices were a fraction of what they sold for during the peak. But rental prices have been stable. Investors were/are able to purchase properties low enough that they can make substantial profits renting them out. So according to that article, and every Realtor you talk to, Arizona's real estate market is a BUY market.
The Phoenix market was a BUY market vs renting. San Francisco was a RENT market.
Many houses bought during the bubble were financed with low down mortgages, which defaulted in extremely high numbers. The Phoenix metro area had one of the 10 highest foreclosure rates in the nation. So.... this had left a glut of homes on the market, most of those prices were a fraction of what they sold for during the peak. But rental prices have been stable. Investors were/are able to purchase properties low enough that they can make substantial profits renting them out. So according to that article, and every Realtor you talk to, Arizona's real estate market is a BUY market.
- Eric Tont, "EricTont"
- Contributions:13
If you can afford it the current market is still a great opportunity to buy! Interest rates are low and home values continue to go up. Most experts are still expecting around 10% gains per year over the next few years, so getting into something and gaining equity in your home is a great way to live instead of paying someone elses mortgage through a rental. It is a great time to be a home owner in greater Phoenix! Let me know if I can help you through the search process or answer any of your questions along the way. Good luck!
- Steffy_Hristova
- Contributions:56
I would encourage you to use the "Buyer Homestyle Search" tool on my website - it's entertaining and you may find answers for yourself. You are doing the right thing - asking the questions.
- SteadyState
- Contributions:874
Use the NY Times buy vs. rent calculator and see if it is financially better to buy then rent. Make the decision based on data and not on propaganda and talking points.
- Erin J. O'Connor Pllc, "Erin OConnor"
- Contributions:5
OMG!!! A realtor that about to tell you NOT to buy!!
Honestly, home ownership isnt for everyone. Dont take a Realtors advice all the time as they may be trying to breathe "commission breath" on you. Look at the following before you decide to jump in the shark tank of home buying..
What do you earn? Annual income tax paid? There ARE tax write-offs for home ownership.
What do you rent your current living arrangements for?
Would the payment on the same caliber property be MORE or LESS if you were to buy? If LESS, than buy. If MORE, then dont.
Are you going to stay in your current lifestyle? Plan on marriage and kids? Less kids? More kids?
See the above questions matter. BIG. Its MOSTLY a great idea to buy. In some cases, it makes no sense. Talk to an agent that doesn't need your commission check from your closing to make their next car payment for candid advice.
Honestly, home ownership isnt for everyone. Dont take a Realtors advice all the time as they may be trying to breathe "commission breath" on you. Look at the following before you decide to jump in the shark tank of home buying..
What do you earn? Annual income tax paid? There ARE tax write-offs for home ownership.
What do you rent your current living arrangements for?
Would the payment on the same caliber property be MORE or LESS if you were to buy? If LESS, than buy. If MORE, then dont.
Are you going to stay in your current lifestyle? Plan on marriage and kids? Less kids? More kids?
See the above questions matter. BIG. Its MOSTLY a great idea to buy. In some cases, it makes no sense. Talk to an agent that doesn't need your commission check from your closing to make their next car payment for candid advice.
- Carole Tyne, "Carole Tyne"
- Contributions:190
There are several factors thought not formulaic as questioned. One: your credit worthiness - can you qualify or have cash to make the purchase - if you do not then must rent until you do. Two - Cash do you have for down payment and closing costs. Three - are you planning to stay in same area for a while? Four - what do you pay for rent and can you buy comprable home for the same or maybe little difference out of pocket. Remember there is no RE Crystal ball. Just have to decide when is best for you. Keep in mind though prices are rising currently -
- Lisa Lucky, "Lisa Lucky"
- Contributions:926
Time to Buy. The housing market's recovery is picking up steam in most neighborhoods across metropolitan Phoenix, according to the latest data for home values. For example, the 85255 zip code had a healthy 9 percent gains in median prices.
- Tom Miller, "Tom at the Lake"
- Contributions:30
I am not aware of any formulas. This is a little like buying stock in the stock market. If you knew that prices were rising, then buying would be good. If you knew prices were falling, you should probably hold out. Your local agent should be able to give you historical sales data that may help you identify a trend. If you assume no change in pricing, it gets more interesting. I believe in property ownership. You have the opportunity for appreciation, but even if it doesn't, you still have historically low interest rates, and the opportunity for the interest income tax deduction. Another important factor is how long you are planning to be in your current location. There are some one-time costs associated with buying that you wouldn't want to incur if you were going to be moving to a different area quickly. I hope this helps. Feel free to post any follow up questions.
- Jennie Miller, Pllc, "jenniemiller1"
- Contributions:301
Buy, buy, buy! Prices are still very low and interest rates are excellent!
rent or buy in Phoenix?
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