Why you should buy instead of rent

Redlands Home Ownership.jpgHome ownership is part of the American Dream. But, thanks to many factors, including rising prices, tight lending practices and reduced inventory, home ownership rates are down. And that is tragic, since studies reveal that people who own homes enjoy greater peace of mind and higher net worth than their rent-paying peers. This is because homeownership is a form of forced savings. Every time you pay your mortgage, you contribute to your net worth. Whereas, each time you pay your rent, you are increasing your landlord’s net worth.HomeownershipRate-Decade

Other Benefits to Home Ownership:

    • High demand and a limited supply of rentals have pushed rents to all-time highs. As a result, in Southern California, in many cases, monthly mortgage payments are comparable to rentals for similar properties. The benefit to home ownership is that a mortgage is paying down your principal rather your landlord’s.
      Rent vs Buy Redlands Real Estate
    • No need to worry about rent increases. In Orange County, long-time residents of Huntington Manor Apartments received notification that their rents would be increased by 32%. Homeowners can rest assured that their monthly mortgage payment will remain steady for the life of today’s typical low fixed rate loan.

Growth in real estate shown on graph

    • If you ever want to downsize, even if the home has not yet been paid off, you could potentially use your home’s equity to make a large down payment on a smaller home, thus giving you a much lower monthly mortgage payment.

 

    • Better yet, if you purchase several properties, you can allow tenants to pay off the mortgages so you can use the rental income to supplement your retirement income.
    • Homeowners get to call the shots without asking someone else’s permission. If you own a home, you can put holes in the walls, paint it whatever color you like and adopt as many pets as you see fit.

Dog with leash

    • Your FICO scores matter either way. Few landlords want to lease their property to someone who can’t afford to pay their bills. Since good credit is required for leasing as well as purchasing, why not use it to buy a home? If you have less than perfect credit, Candace Cantu McGloin can refer you to sources who could help you improve FICO scores.

Credit Score Gauge

IE Vacancy Rates
According to the OC Register, rents in the Inland Empire, where Candace Cantu McGloin is based, average $1,278 a month for apartments, which represents an increase of $59 a month, or 5.4 percent, over last year’s rates. What’s more, the IE vacancy rate was the lowest in the region at 2.7 percent. These rates remained almost as low in Orange and Los Angeles counties, at 3.2 percent and 3.3 percent, respectively — likely because high home prices and rents in coastal communities are forcing people to move east. As a result, now is the time to buy…while prices remain competitive.

Home Buying and Selling

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Redlands Keller Williams Real Estate Agent Candace Cantu McGloin

When it comes time to buy or list your Redlands home, Keller Williams Realtor Candace Cantu McGloin is qualified and willing to help home buyers and sellers across Southern California. She specializes in the cities of Redlands, Highland, Yucaipa, Grand Terrace, and Loma Linda but has done transactions both on the buying and selling side throughout Southern California. To learn more about real estate in Redlands or the Inland Empire or to list your home, call Candace directly at (951) 201-2443.

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