Rent Or Own

Let me begin by asking you a question. Would you rather:

• Build your financial future
• Build someone else’s financial future

When you rent, each month you send in that rent check you are securing the future for someone else. You are paying someone else’s mortgage. How does that sound to you?

Home ownership is part of the American dream. It is the greatest way to build your personal wealth. When you own a home you are building your future and the future for your family.

Can I pay for it?

If you research financial guru’s most of them have the same message; now is a great time to buy. They are saying this because prices are low and interest rates on loans are at all time lows. But a fair question is ‘can I afford a house, isn’t it more expensive?’ The answer is a surprising no. San Diego is an area where it is cheaper to own than to rent.

I did some research comparing renting in Santee versus owning in Santee. This analysis would hold up juts about anywhere in San Diego. Let’s look at the numbers.

Renting vs Own in Santee:

Renting a 2 bedroom apartment in Santee rents for $1390 per month.
Owning a 2 bedroom condo in Santee median price $155,000 (PITI* monthly $996)

Renting a 3 bedroom apartment in Santee rents for $1600 per month.
Owning a 3 bedroom condo in Santee median price $170,000 (PITI* monthly $1092)

Renting a 3 bedroom house in Santee rents for $1800 per month.
Owning a 3 bedroom home in Santee median price $295,000 (PITI* monthly $1894)

Renting a 4 bedroom house in Santee rents for $1995 per month.
Owning a 4 bedroom home in Santee median price $325,000 (PITI* monthly $2087)

PITI is your typical monthly payment including Principal, Interest, Taxes, and Insurance. These are only estimates based on an APR 4.5% 30 year fixed rate loan. Median price is that ½ the homes are lower than that price and ½ the homes are higher than that price.  Above rents and median prices as of Feb 2012.

So what do these numbers tell you? It says that owning is much cheaper than renting; especially when you take the tax advantages into consideration!

Can I get a loan?

Ok, so now you are convinced that owning is cheaper than renting. So now the question is can you get a loan? Well, that is not an easy question to answer (here) but it is one of the most important questions to answer. The key is to get a great loan person. I have some that can talk to you and help answer that question.

There are programs out there that can aid you in getting the right loan from you. The city of San Diego, many municipalities, and even the government have different programs designed to help people own their own home.

This is indeed the best time in history to shift from renter to owner. I would like to help, that is what I do. Just fill out the form to the right and I will be in touch with you soon. Or give me a call at 619-937-5871 or e-mail me at david@davidcares.com.

Dream. Dream Big.