Rent or buy?
Malibu Real Estate – To Rent or to Buy?
Although most people would prefer to buy their own home, the current state of the economy means that at the moment this is just a dream for most people. Malibu real estate agents and other experts are advising that this has resulted in a large increase in the number of people who are currently choosing to rent. The reasons given for this turnaround include potential purchasers seeming to be nervous of investing in their own home in case they lose their job.
Despite the current economic uncertainty, Malibu real estate agents say that it is still worth people carrying out some research and considering the many advantages and benefits of owning your own home.
Paying rent to somebody else doesn’t improve your current financial situation or invest in your future. However, this is not true of a mortgage which actually does the exact opposite. Every time you make a mortgage payment, you are helping to build your own equity and once your home has been paid for, you will have an asset that is of enormous value. You may choose to be mortgage free and remain in the house, or use it as collateral against another, buying your own home is obviously a more sensible long term option than renting.
Another financial benefit involves budgeting and knowing how much disposable income you have on a month to month basis. Rental agreements usually only cover a 12 month period and whenever your agreement is renewed or reviewed, your landlord is free to impose a price hike. Mortgage repayments, on the other hand are fairly constant throughout the term of the mortgage.
There are no tax benefits offered to those people who decide to rent; more detailed research into your own specific situation may reveal that will actually cheaper for you to buy your own home than to rent a property. The Government offer’s various tax incentives to first time home buyers and in many cases, mortgage and property tax repayments can be deducted when completing your tax return. These details make a considerable difference to a lot of people and may make buying your home a much more attractive option.
The current economic decline has caused interest rates to fall and those people who are fortunate enough to have a reasonable credit history and a secure income should be able to qualify for a mortgage with a very low interest rate. Locking the mortgage at the reduced rate could lead to you saving thousands of dollars during the full loan term.
Malibu real estate agents report that one of the major frustrations of renting a property is the restrictions regarding what you are allowed to do in the house. Some landlords don’t even allow tenants to put up their own pictures. You almost definitely won’t be allowed to repaint the walls or replace any items or appliances that don’t meet your needs. But by buying your own home, you are free of all these limitations and can do whatever you want to customize and change it to serve your own requirements.