San Diego Real Estate – Is Buying or Renting Better For You?
SAN DIEGO, CA. – There’s no denying that San Diego Real Estate market is highly competitive and thanks to many recent reports we know that the Real Estate market in San Diego is one of the fastest-growing markets in the nation.
Although rising home prices are good thing for homeowners, it’s not always a good thing for home buyers especially those who have been pre-approved for mortgage loans and are searching for homes.
Thanks to the highly competitive San Diego real estate market many people including local economists have questioned whether or not if buying a home in San Diego is really the best option right now or if renting is better.
In this post I will break down several reasons why you should consider buying a home and several reasons why you should consider renting during the 2016 real estate market so you can ultimately make the right decision for your housing needs.
Why You Should Buy a Home in San Diego
#1 – Fixed Housing Costs – The first reason why you should buy a home in San Diego California right now is that once you finally do own a home, your housing costs will not go up every single year like they would if you were to continue renting.
#2 – Excellent Mortgage Interest Rates – During the last two years one of the biggest reasons to buy home has been historically low mortgage interest rates and in 2016 that hasn’t changed. Mortgage interest rates still continue to be the lowest that they’ve been in decades and they will continue to stay low for a while in spite of negative economic news and recent action by the Federal Reserve but mortgage interest rates are not going to stay super low forever so if you want to save money over the course of a 30 year mortgage loan now is the right time to get pre-approved and buy a home in San Diego.
#3 – More Properties Will Come To Market – Even though the last two years have been highly competitive in the San Diego real estate market the truth is that more homes will be listed for sale during 2016 because, new home construction is finally starting to catch up with demand after the recent collapse of the real estate market in 2007.
#4 – Equity – Over the years one of the most important reasons to buy a home is equity and that still hasn’t changed in 2016. Owning a home is like a forced savings plan that enables you to build equity over time and there really hasn’t been a better investment over the last 24 months than real estate.
#5 – Freedom – Last of all, but most important, one of the top reasons that you should consider buying a home in San Diego during the 2016 real estate market is freedom. As a homeowner you will finally have the freedom to make decisions about where you live without having to first consult with a landlord. These decisions could include interior decorating changes, curb appeal improvements or how long you can allow a friend or family member to live with you and there’s nothing like having that freedom without the feeling that you have to look over your shoulder or get the approval from someone else before you make a decision regarding your home.
Why You Should Rent a Home in San Diego
Over the years I’ve come to realize one thing as a Realtor in San Diego, home ownership is definitely not for everyone so, if you’re sitting on the metaphorical fence trying to decide if you should buy a home in San Diego during 2016 or not, here are several reasons why you should consider renting a home instead of buying.
#1 – Home Ownership Costs – Let’s face it, owning a home does come with additional costs including property taxes, homeowners insurance and maintenance costs that you will have to pay over the years that you own the home so, unless you are able to add those additional costs to your regular monthly budget right now, it may be worth your time to wait another year or two until you are able and ready financially to buy a home in San Diego.
#2 – Don’t Buy A Home If You’re Not Ready To Settle – Yes, another reason for renting a home in San Diego versus buying is the fact that when you do buy a home you have to be willing to declare that home as the place you want to settle for the next 10, 15 or 30 years. If you’re not willing and ready to settle into a home, you may be better off waiting and renting until you find the right neighborhood or community in San Diego that you want to buy a home and settle in.
#3 – Your Credit Score Isn’t Ready – Although you may be able to save 20% for a down payment on a San Diego home, the truth is that if you don’t have a credit score that’s at least 700, you will ultimately pay more every month for a mortgage loan so, it may be worth your time to wait for up to one year to fix your credit score because, the higher your credit score the lower your monthly mortgage payment is going to be.
#4 – You Like Having Someone To Call For Maintenance – Last of all, but most important another top reason to consider renting a home in single versus buying is if you like the feeling of having somebody to call anytime you have the problem or issue with your home like a maintenance or service request rather than having to do the maintenance around your home yourself like: fix a broken pipe, replace a water heater or repair your washer / dryer when they need work.
Learn More about Buying Vs. Renting San Diego Real Estate
To learn more about renting vs. buying San Diego Real Estate contact Farrah Thomas, with Farrah Thomas Real Estate by calling me at (800) 659-8469