Scott Storace - Branch Manager, 100 Pacifica Drive Ste. 140, Irvine CA 92618 NMLS #226339 949.973.0141

"From the minute you call me to the minute we close, I have your back. No hassles, no banker’s hours & quick response times." - Scott Storace

  • Home Loans up to $3,000,000
  • Interest Rate Float Down Option

Have Questions? Call 949.973.0141

Buying vs. Renting Has Never Been Such An Easy Choice

Orange County, CA – If there’s one thing that you can count on to tell you how the market is doing, it’s watching the people whose entire business depends on the market. All through the economic crash, homebuilders have done an astounding job of estimating just how many houses they’ll need to build in the next six months to keep up with demand.

Across America, homebuilders right now are looking forward to about Thanksgiving time, and they’re telling us that they expect to build more houses between now and then than they did during the same period in 2007.  That’s huge news, because it means that the new-housing market has officially recovered to pre-crash rates.

It also means that right now is one of the best possible times to stop paying rent every month on a structure you’ll never own, and make the transition to being a homeowner.

Why is buying vs. renting a great choice?  Two reasons:

  1. Mortgages rates will probably never be this low again in your lifetime.
  2. Monthly rent costs are going up all over the country, but particularly in high-cost areas like New York City and Orange County.

Mortgage rates have been held low due to government action for months now, and there are strong indications that the government is backing out of the mortgage market — so you can expect mortgage rates to shoot upward, and quickly.

At the same time, the millions of people who lost their homes when the economy collapsed and moved in with their parents and grandparents are getting back onto their feet, which means that apartment vacancies are spiraling downward — and thus, rent is spiraling upward.

For several years, the logic of renting has been solid. If you can get more square footage, a better neighborhood, and other advantages in an apartment that you can’t get for the same amount of mortgage payment, it doesn’t matter how good your credit is — renting is the better deal.  These days, though, the shoe is on the other foot and buying vs. renitng makes more sense.

In most of the nicer neighborhoods in America, rent is in the four digits on average. At the same time, mortgage rates are so low that even an average applicant can nail a four hundred thousand dollar loan for less than $1,800/month.  That’s a lot of house for the same amount that you can pay for nine hundred square feet on the edge of town.

Even if you can’t find the perfect pre-existing house for your needs, property costs are still low, and those builders are already gearing up to build hundreds of thousands of new homes between now and the holiday season. Getting a great rate on a mortgage and using it to have a builder create your dream home from the ground up is a plan that won’t get much better than this…ever. If you’re considering buying vs. renting, contact me to find out how much home you can afford fo what you pay in rent.

Scott Storace

If you like this post please share it!

Comments are closed.