Some people who are supposedly “in the know” believe the American dream of owning a home has died. They spout “facts” that say home ownership – not just for Santa Cruz homes, but also across the nation – is no longer on the minds of the majority of Americans.
Additionally, according to some of these individuals, suburban sprawl is the reason for:
• the housing bubble burst,
• the break down of social mores,
• global warming (due to commutes, of course)
• and more.
It’s amazing that the nation’s suburbs can cause so many problems, isn’t it?
Is the American dream of home ownership really dead? The number of people buying Santa Cruz homes versus renting them points to a definitive… maybe. However, in newspapers and on the Internet, we’re seeing tons of “if you can’t sell your home, rent it out” information. We’re seeing potential homebuyers being told that renting may be the best option. Why?
The economy, of course. While there are plenty of want-to-be homeowners, those same people choose to rent rather than own for a wide variety of reasons. The main reason, however, is that they think it will be cheaper.
When you first think of buying a home, it sounds like an overwhelming prospect with lots of money involved. However, while the down payment is much more than it would be for a rental property, it’s time to really look at the cost. Instead of example numbers, let me point you to Money-Zine.com's Rent vs. Buy a Home calculator.
Now, before you start plugging in numbers, remember that the national average for a 30-year fixed rate mortgage is around 4.5% – 5%. The national averages for mortgage rates in general range from 3% to 5.5%. Of course, every situation is different, but think about it and really do your research before you decide whether to rent or buy one of our Santa Cruz homes. Don’t just assume it’s better to rent; renting may not be the cheap option you think it is.
If you’d like to find your piece of the American dream, I can help. Call me at 831.662.6522 or email me at lauren@laurenspencer.com for more information.
Links:
Rent vs. Buy a Home Calculator
Renting may not be the cheap option
Posted by Lauren Spencer on
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