It Really is Cheaper to Buy vs. Rent | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Since the housing bubble burst, it seems like everyone and their mother can’t stop talking about what a great time it is right now to buy a home, but how good is itreally? After years of seeing home prices drop like flies and rental markets tightening up better than pair of Spanx, it’s safe to say that homeownership is very affordable almost everywhere. In fact, it is now cheaper to buy than to rent in 98 of the 100 most populous metros – including (shocker!) pricey places to live like New York, Los Angeles and Boston. Says who you ask? Our Trulia’s Winter 2012 Rent vs Buy Index – that’s who!To give you a little bit of background, this Index is what we use to figure out whether buying a home or renting in a given metro is easier on the pocketbook. To do this, we look at asking prices for rentals and homes for-sale on Trulia.com while also factoring other costs like taxes, insurance and maintenance, etc. 
Click here to view the full-size interactive graphic.
Buying Beats Renting 99 Miles From LA, But Not AlwaysGenerally speaking, homeownership in SoCal gets pricier as you move away from the coast towards the desert, but this “rule” is by no means set in stone. There are a couple of big exceptions: Pasadena and the San Gabriel Valley. These two real estate markets are really far from the beach, but are crazy expensive places to buy a home as compared to renting. Heh, go figure. But check out Ojai and Ventura County!
Start Spreading The News, I’m Leaving NYC For The Suburbs TodayTruth be told, it won’t surprise anyone to say that you need to be making some serious bank in order to be a Manhattan homeowner. Housing crisis or no housing crisis, it’s still going to be a really expensive place to live compared to pretty much anywhere else in the U.S. of A. However, if you can let go of Manhattan city living (like Miranda in “Sex and the City” did), then you might be pleasantly surprised to know that buying a home is definitely doable. You just got to look even further than Brooklyn and Staten Island (priced-out Manhattanites have bid up home values in many neighborhoods…boo! hiss!). How far? Think Queens, the Bronxand other nearby suburban counties.
Left My Heart In San Francisco…As I Move To The East BayWhen it comes to buying a home in the SF Bay Area, you’re going to have to pay a pretty penny as compared to renting to do so in San Francisco, the Peninsula (San Mateo County) and in the South Bay (Santa Clara County). You’re more likely to get a better deal once you cross the Bay Bridge and head to the East Bay (Alameda County and Contra Costa County). That’s because there’s been more empty homes andforeclosures on that side of the bay.
If You’re Living in Chicago, It’s Cheaper to Buy vs. RentNo matter how you slice and dice it, being a homeowner in Chicago is much more affordable than being a renter. Even in the heart of the windy city (the Loop and Near North Side), buying is relatively cheaper than buying than in many suburbs of New York, San Francisco and Los Angeles.
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Tami Winbury
Family Friendly Service
Wednesday, May 23, 2012
It Really is Cheaper to Buy vs. Rent
Wednesday, May 16, 2012
Sellers Raise Home Prices, Are Buyers Responding?
Sellers Raise Home Prices, Are Buyers Responding?
Median list prices rose by 0.7% in April from March to their highest level in nearly one year, even as the number of homes listed for sale stood at levels down nearly 19% from a year ago, according to a report released Wednesday.
Compared with a year ago, median asking prices were up in 72 markets, flat in 14 markets, and down in 60 markets. But compared with the prior month, they were down in just five of those markets, according to Realtor.com.
Asking prices were up by 25% from one year ago in Phoenix, by 15% in Miami, and by 10% in Washington, D.C. Prices were down by 8% in Chicago and Philadelphia. Compared with March, sellers’ prices were up by 7.9% in Minneapolis, by 4.7% in Detroit, and by 4.6% in San Francisco.
Inventories of homes for sale rose by 2% from March but were down from one year ago in all but six of the 146 markets. Inventory fell by 53% in Oakland, by 47% in Phoenix, and by 39% in Atlanta.
Meanwhile, median age of inventory listed for sale in April stood at 84 days, down by 11.6% from one year ago, meaning that homes listed for sale are staying on the market for less time. In Oakland, homes were listed for just 20 days, down by 55% from one year ago, while the median age of inventory in Denver stood at just 32 days.
The Realtor.com figures include sale listings from more than 900 multiple-listing services across the country. They don’t cover all homes for sale, including those that are “for sale by owner” and newly constructed homes that aren’t always listed by the services.
Contact Tami Winbury Keller Williams Realty today to talk about the market in Ojai and Ventura County. 805-798-3412 www.ShortsSale.org
By Nick Timiraos
Monday, May 7, 2012
Pros and Cons to Buy or Rent
Pros and Cons to Buy or Rent
Deciding whether it's best to buy or rent a home isn't an easy decision. There are financial pros and cons to each. Plus, whether or not you want to become a homeowner may depend on your lifestyle, so it's very much a personal choice. Take a close look below at the pluses and minuses before making your move. For personal information and discussion about the home buying process contact Tami Winbury Keller Williams Realty 805-798-3412 DRE#01878369
Pros to renting
- You're not required to save up a hefty down payment.
- Renting is normally a short-term commitment (you normally can sign a lease for as little as a few months to a year).
- You are usually free of major maintenance costs and paying property taxes -- your landlord takes care of that. Also, it's normally up to the landlord to take care of major maintenance issues for the home. You're probably not responsible for tiring tasks like mowing the lawn or the shoveling the snow.
- You aren't tied down to one place, and can relocate fairly easily.
- In some cases, renting may be less costly than owning a home. While you may be able to afford the rent on a pricier home, you might not have the means to buy a similarly priced residence.
- Since you are only obligated to a relatively short-term lease (a few months, or a year), committing to a particular rental isn't an arduous decision.
Cons to renting
- You aren't building equity (the value an owner has in a piece of property minus the debt against it).
- You can't take advantage of tax benefits (like tax deductions for mortgage interest and property taxes) only available to homeowners.
- You may be subject to rent increases that you can do little about.
- You might not be able to decorate a home as you like. (You may have to stick with the white walls and beige carpeting that your landlord put in.)
- You may be subject to restrictions on pets (some landlords don't allow them). Also, your landlord could infringe on your lifestyle -- e.g., complaining about the level of noise from parties and the number of guests who park at your place.
- You are dependent on the landlord to maintain the home and keep things in working order. (This could be a bad thing if he or she is lax about it.)
- You could be evicted (say, if the landlord decides not to renew your lease, or to sell the home) and may need to seek another place to live.
Pros to buying
- You can build equity over time.
- The home is yours, so you have more control over how to decorate it and landscape it.
- Greater stability -- as long as you can afford the property taxes and your mortgage payments, you don't have to worry about being evicted.
- Getting to know the neighbors. Because you are likely to stay in a home you own longer than one you rent, you may become more involved in your community.
- You can benefit from tax deductions on real estate taxes and mortgage interest.
Cons to buying
- It's a big commitment. You may be in that home for quite some time, so deciding which home to purchase can be tough -- you want to make sure it's a good fit.
- When it comes to maintaining a home, it's all about you. It's up to you to make the repairs when the toilet leaks or pay the handyman for the fixes.
- Homeownership insurance premiums. You'll have to pay these to cover the cost of any potential damage to your property. Also, if your home is part of a homeowners' association (HOA), you'll have to pay HOA fees.
- You may have to borrow heavily and pay interest (take out a mortgage) to afford the home. You could lose your house if you can't keep up with your mortgage payments.
- You have less mobility because of the work and time required to find a buyer, sell your place and move your belongings. (Which you may have acquired more of, now that you own space to keep things in.)
- If you can't keep up with your mortgage payments, you could face foreclosure and a loss of equity. (Not to mention the damage it'll do to your credit history.)
Thursday, May 3, 2012
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