Sacramento Real Estate Views

First Time Home Buyers In Sacramento Real Estate

The Gap Between Rents and Mortgage Payments Is Closing

If you’re renting and trying to make a decision whether or not to buy a home, a new report that just came out could help you make up you mind.

A recent MSNBC article cited that the gap between buying and renting is closing.  This means that the cost of renting and the cost of buying are getting closer together.  Buying is generally a better decision than renting as you’re putting your money into your own future rather than the future of someone else.

Nationwide, the gap has gone from $777 a month to just $221 per month over the last three years and in some areas of the country, it’s even less.

Housing Downturn A Boom for First Time Home Buyers

While the housing downturn has been terrible for so many, there are others who now finally have the opportunity to buy a home.  Prices are low, interest rates are low and while the selection of homes has dwindled in the Sacramento real estate market that isn’t expected to last.

Benefits of Buying

There are many benefits of buying a home and if it’s an option you should go for it.  Real estate, despite what has gone on in our region over the last decade, is a long term investment.  If you plan on staying in your home at least 3 years, I believe the market will appreciate beyond where it is right now.

Just some of the benefits of buying vs. renting are:

1)  Your mortgage interest is a write off on your taxes.  This help close the gap even further at the end of the tax year.

2)  Right now, there is a federal tax credit of $8000 for an individual who earns up to $75K or a couple who earns up to $150K a year.  This is money back to you for purchasing you first home.  This incentive expires at the end of November.

3)  You don’t have to worry that your landlord is not making mortgage payments on your rental.  I hear this all the time from renters.  The house just went into foreclosure or they have to sell short displacing them.

4)  Prices and interest rates are low.  This is the reason for the gap closing in the first place, it’s just more affordable now.

While there are areas of the country that are more affordable than California, the Sacramento region is one of the most affordable metro areas in California.  Don’t miss your chance to buy when the market is the most affordable it’s been in years.

Looking for an agent to help you find a home?  Please give me a call, I’ll be happy to help you.

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This entry was posted on Friday, July 24th, 2009 at 6:45 am and is filed under Real Estate Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

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