If you’re still renting your Pittsburg, CA home, it might be time to give buying some serious thought.
Renting is the correct plan for you if:
You plan to relocate within the next year or two.
You want to be free to move if the mood strikes you.
You really don’t want to be responsible for maintenance of a house.
Otherwise, give some thought to what your rent payments are paying for.
Unless your landlord inherited the house, purchased it with cash, or has owned it so long that it’s been paid off, you’re paying his or her mortgage payments. But that’s not all. You’re also paying for:
Property taxes, which may be higher since the house isn’t owner-occupied.
Insurance, which only covers the structure, the fixtures, and the owner’s liability – not your personal possessions.
A fund that pays for maintenance, repairs, and loss of income during vacancies.
In some cases – a rental manager
Cash flow (profit) for the owner
Your landlord’s increasing equity
As a homeowner, you’ll pay for taxes and insurance, and if you’re wise, you’ll put money aside for maintenance and repairs. However, you won’t be paying for a rental manager or vacancies, and you won’t be adding to a landlord’s cash flow or increasing his or her equity each month.
When you pay rent, all you gain is a roof over your head, the certainty that rent will probably increase in the future, the insecurity of knowing you could be asked to move out at the end of your lease, and of course, some rules to follow.
When you purchase a house, you’ll be gaining a little equity equity with each payment. You’ll also be gaining from any improvements you make, and you’ll be the one making the rules.
PERHAPS YOU’RE WORRIED THAT PRICES ARE ABOUT TO DROP
At the beginning of the pandemic, some did predict that home prices would fall. But it didn’t happen. There was a dip in sales volume at first, but the market bounced right back. Now the only thing slowing sales is lack of homes for sale.
That means it might take a bit longer to find the home you want. The continuing concern over COVID-19 also means you’ll need to follow new protocols when viewing homes – to keep both you and the homeowners safe.
The good news is you can do more of your house-hunting on line. More and more agents are posting virtual tours, so you can narrow your choices long before you step foot in any of the Pittsburg, CA houses for sale.
The other good news is that interest rates are at unbelievable lows – hovering around 3%.
That means you can either afford “more home” than you could previously, or you can keep more money for other priorities in your life.
The first step toward home ownership is becoming pre-approved for a mortgage loan. If you don’t already have a lender you like and trust, call me. I’ll be glad to refer you to a few who have served my clients well. And of course, when you’re ready, I’ll be glad to help you find your “just right” Pittsburg, CA home.