Is it cheaper to buy than rent? If you are currently renting in the TriValley, you are experiencing the rising costs first hand of the rental market. The housing market has an inverse relationship to the local rental market and it is safe to assume that the rental market today is blazing the trail to heightened rates. So much so, that for individuals who have good credit, a steady income and a down payment, it only makes sense to look at getting back into the housing market.
Do you fit in this box…Currently Renting A Two-Bedroom, Two-Bath Apartment And Paying $1800 or more?
As of today, there were 94 condos of townhomes in the TriValley which had at least two bedrooms and two baths and were priced $450,000 and under. (Want to get these homes emailed to you daily?) While some of these places are inevitably not as nice as your apartment, many of them would be similar or nicer.
The chart below will show you that after your tax shelter and deductions, with today’s prices and interest rates, you can actually be paying less if you were to buy one of these homes than if you continue to rent. Why pay $1800 in rent and let your landlord get rich when you can buy your own home for a monthly net cost of $1788? (Stay tuned to read who should not be buying a house in the Trivalley)
Buying a home will not make you a quick buck. However, in the long run, it has always been a great return on investment. While the current housing industry is at one of it’s weakest stages, it can also be an ideal time to get in low. If you would like to discuss your current situation further in details, please do not hesitate to contact me.
Chris Kamali is a TriValley Real Estate Agent, helping clients buy and sell homes in Dublin, Pleasanton, San Ramon and Livermore.
