In these market conditions and falling prices it seems that renting for a while is just better. You can find nice homes for rent and not worry about price declines.

I would like to hear some honest opinions from real estate agents.

It all depends on your future objectives. If you rent, you may have to worry about being told to move when you least expect it! I have seen it happen lots of times. The owner wants to rent to a friend or relative and when your lease is up - you are out! Also, you won't build any equity if there is any to be had in your area.

Historically, real estate does increase in value IN MOST AREAS over long stretches of time. Maybe not as much as some stocks or other investments, but for most people, building equity while having a stable place to live are better than just renting. I would say that the risks and benefits of longterm investments are probably about the same as real estate - all things being equal - and you get a place to live. You may have increased maintenance costs, but you'll also realize some tax benefits.

If you are worried about having to sell a property in the next year to two - then rent! If you have stable employment and plan to stay put for a number of years, buy! Talk to a lender and find out exactly what your payments will be, what kind of tax benefits you'll get when you own and make your decision based on your individual financial needs. For some - renting is better, for others, it's definitely time to buy.

Many first time homebuyers are looking for beautiful homes right off the bat and overlooking the homes that need work - part of our "entitled" attitude that is so prevalent these days. Take advantage of that and make the most of your elbow grease equity - it will most certainly pay off.

Good Luck!
Meredith Laws
Windermere Real Estate / Anacortes Properties

Hi Jamie,

Renting is never a good idea unless you can't qualify for a home loan. Every month you are helping your landlord pay his mortgage payment, he gets the benfit of the write off on this taxes, his building is appreciating in value, and you are throwing your money away.  Now if you owned the home, you get to deduct the interest payments from your taxable income, your home increases in value over time, and when you sell your home YOU get the profit and not your landlord. The last time I sold a home I got $55,000 at closing. It's like a forced savings account and is a much better investment than the miniscule amount you would get back from a savings account. Plus the home is yours....you don't need permission to paint it, change it, add to it, etc. It's yours!!!

Hope that helped.  :)

Buy low and sell high. That's my motto. Listen people, it's not rocket science, it's real estate. We all get caught up in the flurry of the market and many of us buy when real estate is peaking. Yes I know, the economy was doing good and most of us were making money and willing to spend it. With stars in our eyes, as we saw home values rising, we all wanted some and had the money to do it. Even if it was a stretch financially, we did it hoping for big returns in a relatively short time. So now homes prices have fallen and buying a home is more affordable and nobody has any money and those that do are leary. Wake up people! I saw it coming, well kinda. I at least new that my home tripling in value over a 10 year period was crazy.  So I sold all but my primary residence in 2006 and now I'm buying again. Foreclosures to be exact, and some for as much as a 62% reduction in price compared to it's 05-06 value. Hell, they even have a positive cash flow when rented. It's a no brainer. Make your money work for you. Real estate is a gold mine in this market. especially in California. Unlike the stock market, you own real property, and we all use it daliy. We rent it, buy it , shop in it, conduct business, fix it up and sell it. We drive on it, vacation to it, and yes, we party at our favorite spots! You snooze, you lose, and I mean that in a nice way. It is time to step up to the plate if you haven't already struck out. HorstSellsHomes.com. Work smarter, not harder! I'm the biggest bean counter around.

Invest with the best. Jason at Keller Williams Realty Paso Robles, Ca. 1-805-400-8411                                                          It's your future. What are you waiting for?

WHAT ABOUT A RENT TO OWN HOME?

Hi Andrea

I want to buy but run into problem because my job is taking me overseas. How can I get a lender to finance my home purchase? I am first time buyer with excellent credit and good salary.

Awa.

Now with interest rates at an all time low and home prices low, it's never been a better time to buy. Especially for first time homebuyers with the $8,000 tax credit being offered; it's practically a no brainer!  You can read more about the First time Homebuyers Tax Credit on my website:  http://www.RealEstatefromLisa.com under articles.  Good luck to you!  Make sure you find a good buyers agent to represent you properly, even with new construction.  Lisa Thompson, AgentOwned Realty, Summerville, SC

Hi Jamie!

If you are still considering upgrading, now really is a wonderful time to buy.  I am located in Manhattan, where prices are down 25-35%, but you would have to check locally for how much prices have fallen.  Mortgage rates are low.  And, negotiating power is up!  There are also some government initiated incentives for home buyers that may or may not be useful to you, but here are the details...

The first time home buyer’s government program, under which you can receive up to $8,000 in direct tax credit, will be available only for deals closed before November 30th.  This is a wonderful opportunity for anyone who has not owned a principle residence in the past three years. 

The details of the credit are similar to the one offered in 2008 and include the following requirements:

•             Buyers must close on their home purchase by November 30, 2009

•             Buyers must ensure that they are qualified first-time buyers under IRS guidelines

•             Buyers must decide which year to file under, 2008 or 2009

•             Buyers must file an amended 2008 return or choose to apply the credit to their 2009 tax return

In addition The State of New York Mortgage Credit Certificate has also been issued, under which 20% of your annual mortgage interest can be converted into tax credit and deducted dollar for dollar from your Federal income tax liability.  The credit certificate can be used in conjunction with the first time home buyer’s program, but is not limited to first time home buyers.

Alessandra Marx

alessandra@elikaassociates.com

http://www.elikaassociates.com