Should I Buy a Home or Continue Renting?

There are some people who have not purchased homes because they are uncomfortable taking on the obligation of a mortgage. Everyone should realize, however, that unless you are living with your parents rent-free, you are paying a mortgage – either yours or your landlord’s.

It’s either your mortgage or your landlord’s

As Entrepreneur Magazine, a premier source for small business, explained in their article, “12 Practical Steps to Getting Rich”:

“While renting on a temporary basis isn’t terrible, you should most certainly own the roof over your head if you’re serious about your finances. It won’t make you rich overnight, but by renting, you’re paying someone else’s mortgage. In effect, you’re making someone else rich.”

Is now a good time to buy a home?

With home prices rising, many renters are concerned about their house-buying power. Mark Fleming, Chief Economist at First American, explained:

“Over the last three years, renter house-buying power has increased fast enough to keep pace with house price appreciation, so the share of homes that a renter can afford to buy has remained the same since 2015. Although mortgage rates are expected to rise, they are still low by historic standards, and real household incomes are the highest they have ever been. Assuming this trend continues, our measure of affordability, which takes into account income, interest rates, and house prices, indicates that homeownership is still within reach for renters.”

Homeownership is forced savings

As an owner, your mortgage payment is a form of ‘forced savings’ which allows you to build equity in your home that you can tap into later in life. As a renter, you guarantee the landlord is the person building that equity.

Interest rates are still at historic lows, making it one of the best times to secure a mortgage and make a move into your dream home. Freddie Mac’s latest report shows that rates across the country were at 4.51% last week.

Thinking of buying a home?

Whether you are looking for a primary residence for the first time or are considering a vacation home on the shore, now may be the time to buy.

Recent Articles

home inspection santa barbara

13 Things Santa Barbara Homebuyers Should Know About Inspections

If you’re not familiar with home inspections, then you might have a lot of questions about what gets inspected, how thorough the inspectors are, why you even need one, and what you can expect if you’re walking with an inspector through the house you’re hoping to buy in santa barbara. There’s a lot to know…

signs of a good real estate agent

21 Telltale Signs of a Good Real Estate Agent

Just like in any other profession, there are good real estate agents … and there are, unfortunately, subpar real estate agents, too. But how do you know if you’ve got a dreamboat or a dud handling your real estate transaction? One way to know whether you’ve got a good agent (or not) is to consider…

images1245-5c5aa32d19337-1024x683

10 Tax Breaks for Santa Barbara Home Owners

Being a homeowner definitely has its advantages, and saving money on your taxes each year just might be at the top of the list. Make sure you’re taking advantage of these common tax perks as a homeowner: 1) Mortgage interest One of the most common tax perks, you can deduct mortgage interest for your primary…

keller-williams-santa-barbara-1

4 Questions to Ask Before Selling Your Santa Barbara Home

There comes a time in every home owner’s life when he or she realizes: “I am not the same person I was when I bought this place.” Maybe your lifestyle or your family configuration has changed, or maybe the house just isn’t as appealing as it was when you signed that ream of paperwork on…

overhead view of couple moving in to new home and using wireless internet on tablet computer

5 Mistakes to Avoid When Buying a House in Santa Barbara

Buying a home can be an anxiety-ridden process, and that potential anxiety gets amplified for anyone who’s embarking on homeownership for the very first time. There’s so much to do and so much you don’t know that “being overwhelmed” hardly seems like an appropriate description of how it feels. And even though you don’t want…

daniel zia magazine cover

Daniel Zia Awarded Cover & Featured Interview In World Class Magazines

Founder of Zia Group, Daniel Zia, was awarded the cover and featured interview in World Class Magazines. Below, you can read the complete article written by author Katrina World. Focus, appears to be fundamental to Daniel Zia and his Zia Group’s business strategy. Zia surrounds himself with a stellar team of eight, each centering in…