So you’ve spent the past few years saving every extra dime and feel that you finally have a good down-payment for a house. Should you take the plunge and start to look for the perfect house?
The choice between continuing to rent or to buy a home is one of the biggest financial choices anyone can make in their life. Real estate center Zillow has checked the numbers of the housing markets across the USA and give an enthusiastic “Yes.”
Consider the following. It will take only about two years for you to break even on your home investment. This is a good indication of the current housing market. Currently interest rates are low and forecasts for the future predict that real estate is on the up-swing. This means that your well-maintained home investment will only go up in value in the coming years. Recommended is a down payment of 20% with a 30-year fixed rate mortgage of 3.56%.
Rents however, are expected to go up by 3% each year. At the end of a rental you own nothing, but, of course, you forgo some worries and expenses such as taxes and repair/maintenance costs of owning a home.
Should I stay or should I go?
In the Philadelphia and Bucks County Pa. areas the average rental rate is $1,558. A studio such as this one on the left might be a little less, but most rentals are in this price range, especially those with added amenities.
To rent or to Buy? Consider a few more things.
If you buy a $250,000 home with a 20% down payment, a 30-year fixed mortgage with a rate of 3.67% your monthly mortgage payments will be around $885! Of course you must add utilities (which most renters have to pay anyway), maintenance fees, taxes and initial closing costs to your home purchase). Would you be able to rent a home like the one you wish to buy for that rate? Probably not! In the end, when all is added up, you will probably be able to afford a home within or close to your rental rate. With the housing market going up, the question of whether to rent or to buy seems easy to answer. It’s time to buy.
If you are looking for a great Bucks County Home to buy, call Michaelangelo Greco at 215-470-1983 for advice on what you can afford, what’s available, and how to take the steps to home ownership. As a buyer representative he will take the time to search, negotiate, and help you purchase the home of your dreams.