Buying Versus Renting
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This week there was an article in the AZ Republic that discusses the upswing on rental properties. As prices for homes have gone up, so has the demand for rental properties. As wonderful for homeowners as the increase in home values is, it has made it more difficult for many would-be first-time buyers to afford a new home. Therefore the rental market is gaining. The valley apartment vacancy rate has dropped by over 10 % in the past year. In addition to that, as typical supply and demand forces reign, the average rent payment has also increased. The glut of rental single-family homes is decreasing as many investors reap their profits, which also helps pricing once again due to the supply/demand aspect.
This is still good news for potential homeowners. Although many people may be looking at less home for the money than last year, these statistics show it is still smarter to own. While one should always consult a financial or tax advisor for their specific situation, it is wise to look hard at buying. As mortgage payments rise, so do the rent payments. It most situations the effective payment after tax benefits and especially equity appreciation make it very worthwhile to own. Not to mention the sense of security, ability to do what you want with the property and establishment of roots in a community.
If you are considering a first time purchase, and aren't sure if it is feasible, please contact us so that we can provide you with information to help you make that decision.
Adam Tarr and Sharon Kotula
Your Phoenix area Real Estate Source