Buying vs. Renting

Are you deciding between buying and renting a home in Coronado, CA or greater San Diego? Read on. Many renters are finding that the increase in affordability—combined with low interest rates and tax incentives—are tipping the scales away from renting and towards home ownership. Here are some advantages of buying vs. renting.

Please keep in mind that buying a home is a very individual decision. Contact us for a free buyer consultation to see if buying a home is right for you.

Top 7 Advantages of Buying vs. Renting

1. Buying a home doesn’t always have to cost much more than renting a home. According to recent studies from the Associated Press, the difference between monthly mortgage payments on an average-priced home and the average rent has decreased from $777 to just $221 in the last three years on a nationwide basis.
2. The level of affordability is at an all-time high. In markets across the nation, prices have declined by nearly 40 percent since the peak of the market.
3. Buyers can realize the tax benefits of owning a home. Usually, the biggest tax break is reflected in the mortgage payment homeowners make on a monthly basis. For most, the bulk of that payment goes towards interest. It’s helpful to remember that all interest is deductible. Property taxes are also deductible.
4. Buyers can still purchase homes with little or no down payment. Most conventional loans still require 20% down. But qualified first-time buyers may be eligible for loans insured by the Veterans Administration (VA Loan), which does not require a down payment. Another loan product gaining popularity are those insured by the Federal Housing Administration (FHA Loans), which require only a down payment of 3.5 percent.
5. The Homebuyer Tax Credit. First time home buyers—defined as anyone who hasn’t owned a home in the last three years–are entitled to either U.S. backed homebuyer tax credits or CA tax credits. See our homebuyer tax credit page for more info on current tax credits.
6. Mortgage rates are at all-time lows. Take advantage of low 30 year fixed rates. We haven’t seen rates this low in the last 3 decades!
7. Buy it? It’s yours! It feels good to own your own home. After all, you can paint it any color you want, make cool improvements, and even plant a little garden. Or not.

Interested in Buying a Home or Condo in San Diego?

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